MARKET STRUCTURE · INDIA
Adani Power secures 1,600 MW supply LoA from MSEDCL
Change
Adani Power secured a Letter of Award from MSEDCL to supply 1,600 MW under a 25-year Power Supply Agreement scheduled to begin in FY 2030–31.
Why it matters
The LoA awards Adani Power the right to supply 1,600 MW from an upcoming ultra-supercritical thermal project. The contract sets a combined tariff of Rs 5.30/kWh for the contracted supply. Supply under the 25-year Power Supply Agreement is scheduled to start in financial year 2030–31. The MSEDCL bid includes a pre-determined coal linkage that specifies fuel arrangements for deliveries. The award increases the amount of under-implementation pipeline capacity secured under long-term PSAs to 13.3 GW.
Implications
- • Tariff for the contracted 1,600 MW is fixed at Rs 5.30/kWh for the PSA term.
- • Fuel procurement must align with the pre-determined coal linkage for the duration of the contract.
- • Contracted supply is scheduled to begin in FY 2030–31, creating a delivery timeline for project completion and commissioning.
- • Portfolio planning must account for an additional 13.3 GW of pipeline capacity tied to long-term PSAs.
Who is affected
- • Thermal power project operators
- • Fuel procurement teams
- • Utilities procurement and planning teams
- • Project finance departments
What to watch
- • Supply commencement: financial year 2030–31
Source
Topics
Business & Markets Supply Chain & Logistics Energy & Power Grid & Utilities