Shares of Adani Power Ltd and Adani Green Energy climbed around 6% on September 16 after both companies announced receiving a Letter of Intent (LoI) for the supply of 6,600 MW hybrid solar and thermal power from Maharashtra State Electricity Distribution Company Ltd (MSEDCL).
Adani Green Energy’s Record Solar Award
Adani Green Energy is set to supply 5 GW (5,000 MW) of solar power from Khavda, marking the largest solar power capacity award globally.
The solar projects will connect to the Inter-State Transmission System and will be developed in phases over three years, following the signing of Power Purchase Agreements (PPAs) with MSEDCL. The company secured a flat tariff of Rs 2.70 per kWh for 25 years.
Adani Power’s Thermal Power Contract
Meanwhile, Adani Power will deliver 1,496 MW of thermal power from its 1,600 MW Ultra-Supercritical facility, the largest thermal capacity award in India. The power will be supplied from a new thermal plant (2×800 MW) that will be built using ultra-supercritical technology. The project will operate under a Design, Build, Finance, Own, and Operate (DBFOO) model, with coal sourced from allocations under Para B (iv) of the SHAKTI Policy.
Contract Details and Timeline
Both companies will sign separate contracts with MSEDCL for their respective power supplies. Adani Power will enter into a 25-year Power Supply Agreement (PSA) with MSEDCL for the supply of 1,496 MW (net of auxiliary consumption).
Power delivery from Unit 1 (800 MW) is expected to begin three and a half years after the appointed date, while Unit 2 (800 MW) is set to commence four years after.
Bidding Process and Strategic Collaboration
The 6,600 MW capacity was secured through a competitive bidding process initiated by MSEDCL to procure 1,600 MW of thermal power and 5,000 MW of solar power. Adani Power bid for 5,000 MW of solar capacity on behalf of Adani Green Energy, leveraging the complementary strengths of both companies in thermal and solar power.
This major deal strengthens Adani Group’s position in the Indian power sector and highlights its growing influence in both renewable and traditional energy markets.