Adani Power wins 1,500 MW thermal deal with UP at Rs 5.383 per unit

UP cabinet approves 25-year PPA with Adani Power for 1,500 MW supply at Rs 5.383/unit after competitive bidding to meet long-term energy needs in the state

Following a competitive bidding process, India’s largest private thermal power producer, Adani Power, has secured a long-term contract to supply 1,500 megawatt (Mw) of electricity to Uttar Pradesh (UP) at ₹5.383 per unit for 25 years.

 

On Tuesday, the state’s Cabinet approved a power-purchase agreement (PPA) between Uttar Pradesh Power Corporation Ltd (UPPCL) and Adani Power, marking a key step in the region’s push to secure future energy demand. “We decided to purchase a total of 1,500 Mw (ex-bus) power from a 2x800 Mw (1,600 Mw) thermal power project based on competitive bidding,” said UP Energy Minister A K Sharma. “Seven companies came forward and participated in the bidding process.”

 

 

The supply will originate from a new thermal facility to be developed within the state. The bidding was conducted against a tender issued in October 2024, aimed at addressing the state’s projected need for an additional 10,795 Mw of thermal power by the year 2033-34.

 

Adani Power quoted a fixed charge of ₹3.727 per unit and a fuel charge of ₹1.656 per unit in its winning bid. “The company’s bid was the lowest in the tender to provide energy in both parts of the power purchase cost,” said Sharma.

 

The shares of Adani Power closed 3.45 per cent lower at ₹537 on the BSE, while the benchmark Sensex declined 0.19 per cent to end at 80,641.07 points.