Did Adani Power Secure a 1,600 MW Electricity Supply Contract for Uttar Pradesh?

New Delhi, May 6 (NationPress) The Cabinet of Uttar Pradesh has given the green light for a power purchase agreement (PPA) between the Uttar Pradesh Power Corporation Limited (UPPCL) and Adani Power Limited (APL) for the provision of 1,600 MW of electricity over a span of 25 years.

APL successfully won the bid during a competitive bidding process held in October 2024.

This electricity will be sourced from a new facility that is set to be established in Uttar Pradesh.

Uttar Pradesh had initiated a tender to procure power from a 1,600 MW thermal power plant to be built within the state.

Earlier in February this year, Adani Saur Urja (LA) Limited, a fully-owned subsidiary of Adani Green Energy, secured a significant contract from UPPCL for energy storage capacity.

According to a regulatory filing by Adani Green Energy, "Adani Saur Urja (LA) Limited, a wholly-owned subsidiary of the Company, has received a Letter of Award (LOA) from UPPCL for the acquisition of 1,250 MW energy storage capacity from Pumped Hydro Storage Projects."

The contract stipulates that the annual fixed cost for the project is set at Rs 76,53,226 per MW each year, exclusive of taxes. This agreement will be effective for 40 years from the commercial operation date (COD) of the project, as mentioned in the company’s filing.

The project, named Panaura PSP, will be situated in Sonbhadra district of Uttar Pradesh and is anticipated to be completed within the next six years.

India's aspirations for clean energy demand the establishment of large-scale utility storage projects to integrate renewables into the national grid and provide uninterrupted renewable energy.

In addition, Adani Power has reported a remarkable 21.4% increase in its consolidated continuing profit before tax (PBT), amounting to Rs 13,926 crore in FY25, up from Rs 11,470 crore in FY24, thanks to enhanced EBITDA and reduced finance costs.

The Adani Group enterprise experienced a 10.8% growth in consolidated continuing total revenues, reaching Rs 56,473 crore in FY25 compared to Rs 50,960 crore in FY24, bolstered by increased sales volumes, albeit partially offset by lower tariff realization.

Continuing revenues exclude any one-time income recognition from prior periods. Continuing EBITDA for FY25 rose by 14.8% to Rs 21,575 crore, according to the company's data.

For Q4 FY25, consolidated continuing total revenue saw a 5.3% increase, totaling Rs 14,522 crore compared to Rs 13,787 crore in Q4 FY24, mainly due to higher volumes, despite lower tariff realization.

In a remarkable milestone, the company achieved 102.2 billion units (BU) of power generation in FY25, a 19.5% increase from 85.5 BU in FY24.