Adani Power, Adani Green Energy stocks surge up to 6% after securing 6.6 GW hybrid solar and thermal order

Shares of Adani Group stocks such as Adani Power and Adani Green Energy were flying high in today's early trade with gains of up to 6 per cent after both companies were issued letters of intent by the Maharashtra state DISCOM to supply a total of 6,600 MW of hybrid solar and thermal power, the companies said in a joint statement on Sunday.

Shares of Adani Green Energy popped up 5.38 per cent to ₹1,894 apiece, while those of Adani Power surged to ₹669.75 apiece by gaining 5.75 per cent.

This new contract strengthens the presence of both Adani Green Energy and Adani Power in Maharashtra. Under the agreement, Adani Green Energy will supply Maharashtra with 5 GW (5,000 MW) of solar power from the world’s largest renewable energy park, currently being developed at Khavda in Gujarat's Kutch District. 

Meanwhile, Adani Power will supply 1,496 MW of thermal power (net) to Maharashtra from a new 1,600 MW ultra-supercritical thermal power project. The two companies will sign separate Power Purchase Agreements (PPA) with the Maharashtra State Electricity Distribution Company (MSEDCL) to provide electricity to the state.

According to the state's estimates, Maharashtra's power consumption is projected to reach 200 terawatt hours by 2028, with 32 per cent expected to come from renewable sources.

World’s largest solar capacity award since 2020

According to Sunday's filing, the solar capacity award of 5 GW to Adani Green Energy is the world’s largest such award since 2020, bolstering the company's leadership in India and as one of the largest RE portfolios globally. Similarly, the thermal capacity award has been the largest in India in recent years for the private sector.

The solar capacity has been allocated at a flat tariff of ₹2.70 per kWh for supply of power for a period of 25 years. The solar projects are expected to be connected to the Inter-State Transmission System and shall be staggered over three years from the execution of the PPAs with MSEDCL, the company said. 

Adani Power has been awarded the thermal capacity on a Design, Build, Finance, Own, and Operate (DBFOO) basis. Fuel will be sourced from coal linkages allocated under Para B (iv) of the SHAKTI Policy.

Under the terms of the award, the company will enter into a 25-year power supply agreement (PSA) with MSEDCL for the long-term supply of 1496 MW of electricity (net of auxiliary consumption) from a new thermal power plant with an installed capacity of 1600 MW (2x800 MW) to be set up utilizing ultra-supercritical technology.

Power supply under the proposed PSA will commence three and a half years after the appointed date defined thereunder in the case of Unit 1 (800 MW) and four years in the case of Unit 2 (800 MW), according to the exchange filing. 

Sagar Adani, Executive Director of Adani Green Energy, said, “We are glad to collaborate with MSEDCL to meet the states’ rising energy demand through renewable sources and fulfil its RE commitments. Our goal is to accelerate India’s clean energy transition. This is crucial to the country’s energy independence and building a sustainable future. Adani Green is well positioned to achieve the 50 GW target with secured resource-rich sites in strategic locations, a portfolio mix of renewables and storage solutions, a robust supply chain, and clear evacuation plans.”

Anil Sardana, Managing Director of Adani Power, said, “As India advances in achieving its economic growth targets while maintaining a keen focus on sustainability, the role of conventional power in helping stabilize the grid and supplying base load power assumes greater importance. Adani Power is proud to partner with a leading industrialised state like Maharashtra by becoming one of its key suppliers of reliable and competitive power from its existing and upcoming capacities while enabling it to integrate an ever-increasing quantum of renewable energy in its grid.”

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