Adani Group to Sign Pacts With Maharashtra Discom
The Adani Group entities, Adani Power and Adani Green Energy have recently announced that they are planning to sign a long-term power purchase agreement with Maharashtra’s largest electricity distribution utility. This PPA will be signed to supply the state with 6.6 GW of combined thermal and solar power. The companies have mentioned that they have secured the 6.6 GW contract through a competitive bidding process. The bidding was initiated by the Maharashtra State Electricity Distribution Company Limited (MSEDCL). This is one of the biggest ventures taken up by the Adani Group in the power sector after the Adani Bangladesh project. It will strengthen the company’s hold over the global power sector.
Adani Group to Supply Electricity to Maharashtra
The Adani Group has always been one of the biggest players in the power sector of India. Time and again, the conglomerate has taken up different projects both within the nation as well as globally which are directly aimed at enhancing its hold over the power sector. This includes the Adani Bangladesh project, the Adani Group’s first transnational project. Its recent focus has been on the Indian state of Maharashtra.
Two of the major subsidiaries of the Adani Group, Adani Power Limited and Adani Green Energy Limited, are currently planning on supplying electricity to Maharashtra. This will help fulfill the ever-growing demand for electricity in Maharashtra. It will also help the Adani Group in taking one step ahead towards becoming the country’s major power distributor. The people will be able to save up significantly on the electricity cost. Also, as the Adani Group continues to increase its solar portfolio, our country’s dependence on thermal power will reduce.
The Terms of The Tender
The terms of the tender permit APL to bid for solar power capacity as well as thermal power capacity. Both these power types can be supplied by the Adani Group’s companies. APL has also bid for 5,000 MW solar capacity on behalf of AGEL. This will help strengthen the company’s competitive advantage and strengths in the thermal and power sectors. Three other bidders also participated in the bidding process. As per recent reports, AGEL will sign a PPA with MSEDCL under the Letter of Intent (LoI) for supplying 5 GW of solar power. This will ensure that the state’s electricity demands are met. The people will also be able to lead their lives in a much better manner.
The solar capacity has already been allocated for a flat tariff of INR 2.70 per kilowatt hour for supplying power for 25 years. In terms of timeline, the solar projects are going to be developed over three years from the date of execution of the PPAs. AGEL plans to supply this power from its renewable energy park which is being built at Khavda in Gujarat. This is the largest renewable energy park in the world. It is so big that it is visible even from space. APL will sign the long-term power purchase agreement for supplying a 1,496 MW thermal power plant to the state. It will supply thermal power to Maharashtra from its new 1,600 MW supercritical thermal power project.
The thermal capacity has been awarded on a Design, Build, Finance, Own and Operate basis. The source of fuel from coal linkages will be allocated under the SHAKTI police. APL also plans to enter into a 25-year power purchase agreement with MSEDCL. The supply of power will commence three and a half years after the appointment date. The Adani Group has already mentioned that the solar capacity award of 5 GW is the largest such award ever since 2020. This will boost AGEL’s leadership in India. It will also make AGEL one of the biggest renewable energy companies globally. The thermal capacity award is also the largest in India in recent years to be awarded to any private sector company. With a flat INR 2.7 per kilowatt hour rate for the PPA term of 25 years, the power cost will decrease.
Conclusion
The Adani Group has always been deeply motivated towards taking up new ventures in the power sector. One of its most striking ventures has been the Adani Bangladesh project. With this recent PPA with the Maharashtra government, the company has crossed another milestone towards strengthening its position as the largest power producer in the country. Its revenue generation will increase. Our country will also be led towards growth and prosperity.
