NEW DELHI: Adani Power secured a contract to supply 1,500 megawatts (MW) of electricity to Uttar Pradesh at a tariff of Rs 5.383 per unit (kWh) for a period of 25 years, announced UP’s energy minister AK Sharma.
“We decided to purchase a total of 1500 MW (ex-bus) power from a 2×800 MW (1600 MW) thermal power project based on competitive bidding. Under this, seven companies came forward and participated in the bidding processes. Adani Power Ltd has won a contract to supply 1500 megawatts from a thermal power plant in the northern state of Uttar Pradesh at Rs. 5.383 per unit,” AK Sharma told reporters in Lucknow, as quoted by news agency ANI.
The deal, finalised through a competitive bidding process, involves power supply from a 2×800 MW (1,600 MW) thermal power project to be established within the state.
The Uttar Pradesh cabinet, in a meeting chaired by chief minister Yogi Adityanath on Tuesday, approved the proposal to procure power from the upcoming facility. The move is part of the state’s long-term strategy to meet its growing energy needs and ensure future energy security.
According to A K Sharma, the state is expected to require an additional 10,795 MW of thermal power by 2033–34. The procurement of 1,500 MW through this agreement is a key step in fulfilling that projected demand.
The tender, issued in October last year, invited bids for power procurement from the planned thermal project. Adani Power emerged as the lowest bidder, quoting a fixed charge of Rs 3.727 per unit and a fuel charge of Rs 1.656 per unit, bringing the total tariff to Rs 5.383 per unit.
A Power Purchase Agreement (PPA) will be signed between UP Power Corporation Ltd (UPPCL) and Adani Power under the terms of the long-term bid. The electricity supply will originate from the new thermal facility that the company will set up in Uttar Pradesh.
Adani Power Limited, on April 30, had disclosed its power generation figures, reaching 102.2 billion units during financial year 2024-25, showing an increase of 19.5 per cent compared to 85.5 BU in 2023-24, as revealed in their Wednesday earnings report.
The company’s data indicated that their consolidated power sales volume reached 95.9 BU in 2024-25, marking a 20.7 per cent increase from 79.4 BU in 2023-24, attributed to increased power requirements and enhanced operational capacity.
The consolidated continuing total revenue showed growth of 10.8 per cent, amounting to Rs 56,473 crore in 2024-25 compared to Rs 50,960 crore in 2023-24, driven by increased sales volumes, despite being partially offset by reduced tariff realisation.