Adani Power, Adani Green stocks surge 6% on power supply deal with Maharashtra Discom

Adani Power shares were trading over 6 percent higher at Rs 671.80 on the National Stock Exchange (NSE). Adani Green Energy stock was trading nearly 6 percent higher at Rs 1,895.

Shares of Adani Power Ltd and Adani Green Energy soared around 6 percent on September 16 after the two Adani group companies said they have received a Letter of Intent (LoI) for the supply of 6,600 MW hybrid solar and thermal power from Maharashtra State DISCOM.

Adani Green Energy is set to supply 5 GW (5,000 MW) of solar power from Khavda, marking the largest solar power capacity award globally.

Meanwhile, Adani Power will deliver 1,496 MW of thermal power from its new 1,600 MW Ultra-Supercritical facility, the largest thermal capacity award in India. Both Adani group companies will sign separate contracts with MSEDCL for their respective power supplies.

"The 6600 MW capacity has been secured through a competitive bidding process initiated by MSEDCL for procurement of combined 1600 MW thermal and 5000 MW solar power. The terms of the tender permit Adani Power to bid for thermal power capacity along with solar power capacity, which can be supplied by a group company," Adani Power said in a release.

Adani Power bid for 5,000 MW of solar capacity on behalf of Adani Green Energy, utilizing the unique strengths of both companies in the thermal and solar power sectors. The thermal capacity has been awarded to Adani Power on a Design, Build, Finance, Own, and Operate (DBFOO) basis, with fuel sourced from coal linkages allocated under Para B (iv) of the SHAKTI Policy.

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Under the terms of this award, Adani Power will enter into a 25-year Power Supply Agreement (PSA) with Maharashtra State Electricity Distribution Co Ltd (MSEDCL) for the supply of 1,496 MW of electricity (net of auxiliary consumption) on a long-term basis.

This supply would come from a new thermal power plant with an installed capacity of 1,600 MW (2x800 MW), to be constructed utilising ultra-supercritical technology.

Power delivery under the proposed Power Sale Agreement (PSA) is set to begin three and a half years after the appointed date for Unit 1 (800 MW) and four years for Unit 2 (800 MW). For the solar capacity, Adani Green Energy has secured a flat tariff of Rs 2.70 per kWh for 25 years.

The solar projects are expected to connect to the Inter-State Transmission System and will be developed in stages over three years from the signing of the Power Purchase Agreements (PPAs) with MSEDCL.

At 11:10 am, Adani Power shares were trading over 6 percent higher at Rs 671.80 on the National Stock Exchange (NSE). Adani Green Energy stock was trading nearly 6 percent higher at Rs 1,895.

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