Adani Wins Bid to Supply 6,600 MW of Electricity to Maharashtra, Beating JSW Energy

Adani Power Limited (APL) has won a major bid to supply 6,600 megawatts (MW) of electricity to Maharashtra, marking a significant milestone in the state's efforts to transition towards renewable energy. The contract, awarded by the Maharashtra State Electricity Distribution Company Limited (MSEDCL), includes a mix of solar and thermal power. Adani's winning bid, priced at ₹4.08 per unit, narrowly beat JSW Energy, which quoted a higher price of ₹4.36 per unit.

This bundled energy procurement will help Maharashtra meet its Renewable Purchase Obligation (RPO), which mandates that 32% of the state's electricity demand must be met through solar power by 2028. Currently, only 12% of the state's energy comes from solar sources, and the addition of 5,000 MW of solar power through this contract is a significant step towards filling that gap.

Adani’s win was confirmed on Sunday by sources close to the development, with the official announcement expected shortly. The project will include the supply of 5,000 MW of solar power at a fixed price and 1,600 MW of thermal power from a newly built ultra-supercritical coal power plant. The thermal power is designed to meet base load requirements, while solar power will be supplied to meet peak demand and help the state achieve its renewable energy goals.

Key Details of the Agreement

According to sources, Adani will sign a 25-year Power Supply Agreement (PSA) with MSEDCL for both solar and thermal power. Under the terms of the deal, Adani Green Energy Limited (AGEL), the renewable energy arm of the Adani Group, will supply the solar component, while APL will provide the thermal power.

The solar power will come from AGEL’s massive Khavda solar energy park in Gujarat, one of the largest renewable energy projects in the world. This 5,000 MW solar capacity will be connected to an inter-state transmission system and developed in phases over the next three years. The electricity from this project will be supplied to Maharashtra at a fixed price of ₹2.70 per unit, ensuring cost stability for the state’s consumers.

On the thermal side, APL will build a new 1,600 MW (2x800 MW) ultra-supercritical thermal power plant, utilizing coal sourced through linkages allocated under the SHAKTI Policy. The plant will be designed, built, financed, owned, and operated (DBFOO) by Adani. The PSA specifies that power supply from this plant will begin in about three and a half years for the first unit and four years for the second unit. The electricity produced from this plant will be supplied at a rate of ₹4.08 per unit, with the price linked to fluctuations in coal prices.

Impact on Maharashtra’s Energy Sector

Maharashtra, one of India's most industrialized states, has been grappling with rising energy demand. According to MSEDCL, the state’s peak energy demand is expected to reach 35,573 MW by 2028-29 and 39,884 MW by 2030. To meet this growing demand while adhering to renewable energy commitments, the state has been actively seeking ways to increase its solar energy capacity.

Currently, Maharashtra’s solar capacity stands at only 12%, far below the 32% required by the RPO for 2028. The addition of 5,000 MW of solar power through Adani’s contract will go a long way in addressing this shortfall and pushing the state closer to its targets. Moreover, the bundled solar and thermal power solution is seen as a way to ensure that the state can balance its energy mix, using thermal power to provide stable base load electricity and solar power to meet peak demand.

Adani’s Growing Renewable Portfolio

Adani Power is India’s largest private-sector thermal power generator, with a generation capacity exceeding 17 gigawatts (GW). By 2030, this is expected to rise to 31 GW, positioning the company as a major player in the country’s energy landscape. Meanwhile, AGEL is India’s largest renewable energy company, with a current generation capacity of 11 GW. The company aims to increase this capacity to 50 GW by 2030, making it one of the largest renewable energy providers globally.

By leveraging the strengths of both Adani Power and AGEL, the group has been able to secure significant contracts like the one awarded by MSEDCL. In a statement, Sagar Adani, Executive Director of AGEL, said, "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."

Adani’s approach aligns with the broader national goals of expanding renewable energy infrastructure while ensuring energy security through conventional sources like coal. The combination of renewable and thermal power in this tender ensures that Maharashtra will have access to reliable electricity even as it ramps up its solar capacity.

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Adani Power’s victory in this bid not only underscores its leadership in both the thermal and renewable energy sectors but also represents a key step forward for Maharashtra as it seeks to balance its energy needs with its commitment to renewable energy. The 25-year agreement, which includes one of the largest solar energy contracts in the world, will contribute significantly to the state’s RPO and help meet the rising energy demand in the coming decade.

The combination of fixed solar prices and variable thermal energy costs ensures that Maharashtra will benefit from both cost stability and flexibility as coal prices fluctuate. With the support of companies like Adani, the state is poised to become a leader in integrating renewable energy into its power grid while ensuring reliable and affordable electricity for its citizens.

As Adani continues to expand its renewable and thermal portfolios, the company’s role in shaping India’s energy future will become increasingly significant. The success of this tender could serve as a model for other states looking to meet their renewable energy commitments without compromising on energy reliability.

Source: CNBC-TV18