Gautam Adani beats rivals, wins bid to supply 6600 MW of electricity to...

Adani group has won a bid to supply 6,600 MW of bundled renewable and thermal power to Maharashtra for the long term after its quote of Rs 4.08 per unit beat the likes of JSW Energy and Torrent Power. Adani Power's bid for the bundled renewable and thermal energy supply for 25 years was almost a rupee lower than the cost at which Maharashtra currently procures electricity and will help meet future electricity requirements of the state, two sources with direct knowledge of the matter said.

Supplies are to start in 48 months from the date of award of the letter of intent. Later, the Adani group, in a statement, confirmed the PTI news break. "Maharashtra State Electricity Distribution Company (MSEDCL) issues a letter of intent for 6,600 MW to Adani Power." While Adani Power will supply 1,496 MW (net) thermal power from the new 1,600 MW ultra-supercritical capacity, its sister concern Adani Green Energy Ltd will supply 5 GW (5,000 MW) solar power from the Khavda renewable energy park in the Kutch district of Gujarat.

As per the bid conditions, Adani Green Energy will supply solar power at a fixed cost of Rs 2.70 per unit throughout the entire supply period, while that from coal will be indexed to coal prices.

Adani Green Energy "will sign a long-term power purchase agreement (PPA) with MSEDCL under the Letter of Intent (LOI) for supply of 5 GW (5,000 MW) solar power from the world's largest renewable energy park being developed at Khavda in Kutch District of Gujarat, to Maharashtra state, as per the LOI awarded to Adani Power Limited as permitted under the tender conditions," the statement said.

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Adani Power Limited (APL), India's largest private thermal power producer, "will sign a long-term Power Supply Agreement (PSA) with MSEDCL for the supply of 1,496 MW (net) thermal power to Maharashtra state from a new 1600 MW ultra-supercritical thermal power project", it added.

The statement, however, did not detail the tariff bid to win the tender. MSEDCL, in March, floated a unique tender for sourcing 5,000 MW of electricity generated from sunlight and 1,600 MW of power generated from coal. Adani Power quoted Rs 4.08 per unit to win the contract, according to sources said. Its bid compares to Rs 4.36 per unit quoted by the second lowest bidder, JSW Energy, and Rs 4.70 per unit average procurement cost of Maharashtra last year.

The tariff is about Re 1 per unit lower than the Maharashtra Electricity Regulatory Commission (MERC) approved average power purchase cost of Rs 4.97 per kWh (unit) for 2024-25. In all, four companies participated in the tender for the electricity supply for 25 years. Sources said Adani will be paid a fixed price for renewable energy for 25 years, while there is an escalation price in the electricity produced from coal, but it more or less balances out after accounting for 1.5-2 per cent depreciation.

(Except for the headline, this story has not been edited by DNA staff and is published from PTI)