Adani Group Secures Major Energy Supply Contract in Maharashtra
In a significant development for Maharashtra’s energy sector, Adani Group has successfully won a competitive bid to supply a substantial 6600 MW of renewable and thermal power over a long-term period. The winning bid of Rs 4.08 per unit not only outpaced bids from major industry players such as JSW Energy and Torrent Power but also promises to address the state’s future energy needs effectively.
Power Supply Timeline
The commencement of electricity supply is anticipated to begin within 48 months following the issuance of the Letter of Intent (LoI). Under the specific bidding conditions, Adani Power has committed to providing solar energy at a competitive rate of Rs 2.70 per unit throughout the contract’s duration. The pricing for electricity generated from coal will be adjusted based on fluctuating coal prices, ensuring a flexible and responsive pricing structure for the Maharashtra State Electricity Distribution Company (MSEDCL).
Context of the Tender
This tender, issued in March, is particularly noteworthy as it precedes both the Lok Sabha and state assembly elections. It reflects a strategic move to bolster Maharashtra’s energy production capabilities, especially considering the growing demand during peak hours. The tender encompasses a mix of 5000 MW from solar sources and 1600 MW from coal, ensuring a balanced approach to energy generation.
Adani’s Competitive Edge
With a bid at Rs 4.08 per unit, Adani Power has positioned itself favorably against competitors, where the second-lowest bid from JSW Energy was at Rs 4.36 per unit. This pricing is significantly lower than Maharashtra’s average power purchase price, which was Rs 4.70 per unit in the previous year and is projected at Rs 4.97 per unit for 2024-25. This strategic pricing could lead to substantial savings for the state over the contract’s span.
Comparison of Bids
| Company | Bid Price (Rs/unit) |
|---|---|
| Adani Group | 4.08 |
| JSW Energy | 4.36 |
| Maharashtra Average | 4.70 (2022) |
| Maharashtra Average (2024-25) | 4.97 |
Adani Group’s Growing Energy Portfolio
Adani Power, a leading player in India’s private thermal power sector, boasts a current generation capacity exceeding 17 GW, with ambitious plans to scale this up to 31 GW by 2030. Furthermore, its subsidiary, Adani Green Energy Limited, leads the renewable energy market in the country with an existing capacity of 11 GW and aims to expand to 50 GW within the same timeframe. These expansions position Adani Group as a pivotal entity in both traditional and renewable energy landscapes in India.
