Adani Power, Adani Green Energy shares jump 5% each on bid wins; key details

Shares of Adani Power Ltd and Adani Green Energy Ltd climbed 5 per cent each in Monday’s trade after the two Adani group companies said they have received a Letter of Intent (LoI) for supply of 6,600 MW hybrid solar and thermal power from Maharashtra State DISCOM . Adani Green Energy would be supplying 5 GW (5,000 MW) of solar power from Khavda, while Adani Power would be delivering 1,496 MW of thermal power from its new 1,600 MW Ultra-supercritical capacity.

Adani Green’s order is the largest solar power capacity award globally while Adani Power’s the thermal capacity award is the largest in India. Following the development, shares of Adani Power climbed 5.10 per cent to hit a high of Rs 665.90 on BSE. The stock is still down 5 per cent for the one-month period. Adani Green Energy gained 4.59 per cent to hit a high of Rs 1,870.

The two Adani group companies would be signing separate contracts with MSEDCL for their respective supply component.

"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 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.

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 this award, Adani Power will enter into a 25-year Power Supply Agreement (PSA) with Maharashtra State Electricity Distribution Co Ltd (MSEDCL) for the supply of 1,496 MW of electricity (net of auxiliary consumption) on a long-term basis.

This supply would come from a new thermal power plant with an installed capacity of 1,600 MW (2x800 MW), to be constructed utilising ultra-supercritical technology. Power delivery under the proposed PSA is scheduled to commence three and a half years after the appointed date for Unit 1 (800 MW) and four years for Unit 2 (800 MW).

Regarding the solar capacity, the Adani firm has been allocated a flat tariff of Rs 2.70 per kWh for a period of 25 years. The solar projects are anticipated to connect to the Inter-State Transmission System and will be developed in a staggered manner over a period of three years from the execution of the Power Purchase Agreements (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.