"Adani Power Secures LoI to Supply 6.6 GW of Power to Maharashtra for 25 Years"

Adani Power has secured a Letter of Intent (LoI) from Maharashtra State Electricity Distribution Company Limited (MSEDCL) to supply a total of 6,600 MW of power, combining solar and thermal energy, over a 25-year period. According to a statement from the Adani Group, 5,000 MW of solar power will be provided by Adani Green Energy, while Adani Power will supply 1,496 MW of thermal power, with separate power purchase agreements (PPAs) for both.

The solar power will come from Adani Green's large renewable energy park in Khavda, Gujarat. Meanwhile, Adani Power will supply electricity from its new 1,600 MW ultra-supercritical thermal power project.

Adani Power won the 6,600 MW contract through a competitive bidding process initiated by MSEDCL for the combined procurement of 1,600 MW thermal power and 5,000 MW solar power. The group leveraged its strengths in both sectors, bidding for the solar capacity on behalf of Adani Green.

The solar energy will be provided at a flat tariff of ₹2.70 per kWh, with the projects connected to the Inter State Transmission System and developed over a three-year period. The thermal capacity will be developed under the design, build, finance, own, and operate (DBFOO) model, with coal sourced through the SHAKTI Policy. Power supply from Adani Power’s thermal plant will begin in phases, starting in about three and a half years.

Adani Green described the 5,000 MW solar power contract as the largest of its kind globally since 2020. The company has been contributing to Maharashtra’s renewable energy needs, with its Jaisalmer wind-solar hybrid project powering Mumbai since March 2023. As of June 2024, renewable energy accounts for 37% of the energy mix in Mumbai’s distribution network.

HBL