Adani Green Energy and Adani Power will sign a long-term Power Purchase Agreement (PPA) with Maharashtra State Electricity Distribution Company Limited (MSEDCL). The agreement stipulates the supply of 6.6 gigawatts of solar and thermal power.
What Happened: According to an exchange filing on Sunday, the solar energy PPA will be at a flat tariff of ₹2.70 per kilowatt hour for a supply period of 25 years from the date of commissioning. The solar projects are expected to be connected to the Inter-State Transmission System and developed over a period of three years from the execution of the PPAs with MSEDCL.
Adani Power has been awarded a thermal power project on a Design, Build, Finance, Own, and Operate (DBFOO) basis, with coal sourced from linkages allocated under Para B (iv) of the SHAKTI Policy. As part of this award, the company will sign a 25-year PSA with MSEDCL to supply 1,496 megawatts of electricity (net of auxiliary consumption) from a new thermal power plant.
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The plant will have an installed capacity of 1,600 megawatts, comprising two units of 800 megawatts each, utilising Ultra-Supercritical technology. Power supply under this PSA is expected to commence three and a half years after the appointed date for Unit 1 (800 megawatt) and four years for Unit 2 (800 megawatt).
The execution of the PPAs is subject to customary regulatory approvals. Adani Power submitted the bid for thermal power along with the 5,000 megawatt Solar capacity on behalf of AGEL. MSEDCL has issued a letter of intent for the agreement.
This development comes on the heels of the Adani Group’s recognition in TIME’s World’s Best Companies of 2024 list, a testament to the group’s growing global reputation. The Adani Group has also faced recent controversy, as reported by Swiss media outlet Gotham City.
The report alleged that Swiss authorities had frozen over $310 million in various bank accounts as part of an investigation into Adani, which involves money laundering and securities forgery dating back to at least 2021. The Adani Group refuted these allegations, calling them “irrational” and “absurd”.
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