Adani portfolio companies Adani Green Energy (AGEL) and Adani Power (APL) have secured a letter of intent (LoI) from Maharashtra State Electricity Distribution Company (MSEDCL) to supply a combined 6.6GW of solar and thermal power.
Under the LOI, renewable energy company AGEL is set to sign a long-term power purchase agreement (PPA) with MSEDCL to deliver 5GW of solar energy.
AGEL will supply solar power from the renewable energy park being developed at Khavda in Kutch District of Gujarat.
The solar power projects are estimated to be connected to the Inter-State Transmission System and developed in a staggered manner over three years from the execution of the PPAs with MSEDCL.
AGEL will deliver solar power at a fixed tariff of INR2.7 ($0.032) per kWh
On the other hand, thermal power producer APL will enter into a power supply agreement (PSA) for the provision of 1.496GW of thermal power. The power will be sourced from a new 1.6GW ultra-supercritical thermal power plant.
The thermal capacity is awarded on the design, build, finance, own, and operate (DBFOO) basis, with fuel to be sourced from coal linkages allocated through the SHAKTI Policy.
APL aims to commence power supply under the proposed PSA three and a half years after the appointed date in the case of 800MW Unit 1 and four years in line with 800MW Unit 2.
Both parties executed the agreements with MSEDCL for a period of 25 years.
The newly awarded capacity will enable AGEL to contribute towards increasing the state’s renewable energy mix. In March 2023, AGEL’s wind-solar hybrid cluster in Jaisalmer, Rajasthan started powering Mumbai city with green energy.
Adani Green Energy executive director Sagar Adani said: “We are glad to collaborate with MSEDCL to meet the states’ rising energy demand through renewable sources and fulfil its RE commitments. Our goal is to accelerate India’s clean energy transition.
“This is a crucial step towards the country’s energy independence and building a sustainable future.”
Earlier this month, AGEL and TotalEnergies announced a joint venture (JV) to manage a portfolio of solar projects with a total capacity of 1.15GW. TotalEnergies agreed to invest $444m in the proposed JV.
The projects under the new 50-50 JV will be a mix of operational and under-execution solar assets, with a blend of both merchant and PPA-based projects.
