Shares of Adani Power Ltd and Adani Green Energy Ltd are in focus today after the two Adani group companies informed stock exchanges that the Maharashtra State DISCOM has issued Letter of Intent for supply of 6,600 MW hybrid solar and thermal power. Adani Green will supply 5 GW (5,000 MW) solar power from Khavda, while Adani Power will supply 1,496 MW (net) thermal power from its new 1,600 MW Ultra-supercritical capacity.
Adani Power and Adani Green Energy will sign separate contracts with MSEDCL for their respective supply component as permitted under the tender conditions. This would be the largest solar power capacity award globally, following Adani Green's green power award received in 2020. The thermal capacity award, on the other hand, is the largest in India.
"The 6600 MW capacity has been secured through a competitive bidding process initiated by MSEDCL for procurement of combined 1600 MW thermal and 5000 MW solar power. The terms of the tender permit Adani Power to bid for thermal power capacity along with solar power capacity, which can be supplied by a group company," Adani Power said in a press release.
Adani Power also bade for 5,000 MW solar capacity on behalf of Adani Green Energy, thereby leveraging the two entities’ respective competitive advantages and strengths in the thermal and solar power sectors.
The Congress party, however, alleged that it was a "rigged deal" facilitated by the Mahayuti government, which it claimed was "tottering towards a landslide defeat" in the upcoming assembly polls, PTI reported.
Adani Power shares are up 21 per cent in 2024 so far, while those of Adani Green Energy are up 12 per cent during the same period.
As per Adani Power, the thermal capacity has been awarded to Adani Power 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, Adani Power 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 1600 MW (2x800 MW) to be set up utilising 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).
The solar capacity, Adani Power said, has been allocated 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 Inter State Transmission System and shall be developed in a staggered manner over a period of three years from execution of the PPAs with MSEDCL.
"Adani Green is well positioned to achieve the 50 GW target with secured resource rich sites in strategic locations, portfolio mix of renewables and storage solutions, robust supply chain and clear evacuation plans,” said Sagar Adani, Executive Director, Adani Green Energy.