Adani Power Secures 1,500 MW Electricity Supply Contract
Adani Power has secured a significant contract to supply 1,500 megawatts (MW) of electricity to Uttar Pradesh at a competitive tariff of Rs 5.383 per unit for a duration of 25 years. This announcement was made by Uttar Pradesh’s Energy Minister, A.K. Sharma, who confirmed that the deal was finalized through a competitive bidding process involving seven companies. The agreement is part of the state’s strategy to address its growing energy demands and ensure future energy security.
Details of the Contract
The contract awarded to Adani Power involves the supply of electricity from a 2×800 MW thermal power project, which will be established in Uttar Pradesh. The decision was approved by the Uttar Pradesh cabinet during a meeting led by Chief Minister Yogi Adityanath. Minister Sharma emphasized that this procurement is crucial for meeting the state’s projected energy requirements, which are expected to reach an additional 10,795 MW of thermal power by the fiscal year 2033-34. The procurement of 1,500 MW through this agreement is a strategic move to fulfill that anticipated demand.
The tender for this power procurement was issued in October of the previous year. Adani Power emerged as the lowest bidder, offering a fixed charge of Rs 3.727 per unit along with a fuel charge of Rs 1.656 per unit, culminating in a total tariff of Rs 5.383 per unit. A Power Purchase Agreement (PPA) will be established between the Uttar Pradesh Power Corporation Ltd (UPPCL) and Adani Power to formalize the terms of this long-term agreement.
Impact on Energy Security
This contract is a significant step for Uttar Pradesh as it aims to enhance its energy infrastructure and ensure a reliable power supply for its growing population and industries. The establishment of the new thermal power facility will not only contribute to the state’s energy mix but also create job opportunities and stimulate local economic growth. The move aligns with the government’s long-term vision of achieving energy security and sustainability.
As the demand for electricity continues to rise, the state is taking proactive measures to secure its energy future. The addition of 1,500 MW from Adani Power will play a vital role in stabilizing the power supply and meeting the increasing needs of consumers and businesses alike.
Adani Power’s Performance
Adani Power has reported impressive growth in its power generation figures, reaching 102.2 billion units during the financial year 2024-25. This marks a 19.5 percent increase compared to the previous year, where the company generated 85.5 billion units. The rise in power generation is attributed to heightened demand and improved operational capacity.
The company’s consolidated power sales volume also saw a significant increase, reaching 95.9 billion units in 2024-25, which is a 20.7 percent rise from 79.4 billion units in 2023-24. This growth in sales volume has contributed to a 10.8 percent increase in total revenue, amounting to Rs 56,473 crore for the financial year, compared to Rs 50,960 crore in the previous year. Despite some challenges related to tariff realization, Adani Power’s performance reflects its commitment to meeting the energy needs of its customers effectively.
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