Maharashtra State Electricity Distribution Company Ltd (MSEDCL) has issued a letter of intent to Adani Group for long-term supply of thermal and green energy, aggregating 6,600 MW.
In a release, Adani Power said that while 5,000 MW will be supply by Adani Green Energy Ltd from its upcoming Khavda solar power park in Gujarat, the remaining 1,600 MW will come from an upcoming ultra supercritical thermal power plant of Adani Power Ltd.
Accordingly, Adani Power and Adani Green Energy will now sign formal 25-year power supply agreements with MSEDCL.
MSEDCL tender
The 6,600 MW capacity has been secured through a competitive bidding process initiated by MSEDCL for procurement of combined 1,600 MW thermal and 5,000 MW solar power. The terms of the tender permit APL to bid for thermal power capacity along with solar power capacity, which can be supplied by a group company. APL accordingly also bid for 5,000 MW solar capacity on behalf of AGEL, thereby leveraging the two entities’ respective competitive advantages and strengths in the thermal and solar power sectors.
Solar power (5,000 MW)
The solar capacity has been allocated to Adani Green Energy Ltd (AGEL) at a flat tariff of Rs.2.70 per kWh for supply of power for a period of 25 years. The solar projects are expected to be connected to interstate transmission system (ISTS) and shall be developed in a staggered manner over a period of three years from execution of the PPAs with MSEDCL.
It may be mentioned that AGEL’s wind-solar hybrid cluster in Jaisalmer in Rajasthan began powering Mumbai city with green energy in March 2023, with the share of renewable energy in the Mumbai distribution circle’s energy mix standing at 37 per cent as of June 2024.
Thermal power (1,600 MW, gross)
The thermal capacity has been awarded to Adani Power Ltd (APL) on design, build, finance, own and operate (DBFOO) basis with sourcing of fuel from coal linkages allocated under Para B (iv) of the SHAKTI Policy. Under the terms of the Award, APL will enter into a 25-year power supply agreement (PSA) with MSEDCL for supply of 1,496 MW of electricity (net of auxiliary consumption) on long term basis from a new thermal power plant having installed capacity of 1,600 MW (2×800 MW) to be set up utilizing ultra-supercritical technology. Power supply under the proposed PSA will commence three and a half years after the appointed date as defined thereunder in case of Unit 1 (800 MW) and four years in case of Unit 2 (800 MW).
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Featured photograph showing a thermal power plant of Adani Power Ltd in Maharashtra is for representation only.
