Adani Power secures contract to supply 1500 MW to Uttar Pradesh, reinforcing energy security

Image Source : The Economic Times

Adani Power has won a contract to supply 1500 megawatts of electricity to the Indian state of Uttar Pradesh. The agreement, secured through a competitive bidding process, is part of the state's long-term strategy to meet growing energy demands and ensure a stable power supply.

Key highlights

- Contract details
Adani Power emerged as the lowest bidder in the competitive process, securing the contract at a tariff of 5.38 rupees per unit. The company will supply power from its thermal plant, ensuring consistent energy availability for the state.

- Energy demand and state planning
Uttar Pradesh is projected to require an additional 10,795 MW of thermal power by 2033-34, prompting efforts to secure reliable energy sources. The state government has been actively working on expanding its power procurement strategy to meet future demand.

- Power supply agreement
A 25-year Power Supply Agreement (PSA) will be signed with Adani Power, ensuring long-term stability in electricity distribution. This agreement is expected to support the state's infrastructure growth and industrial expansion.

- Market impact and industry response
The deal reinforces Adani Power’s position in the energy sector while supporting Uttar Pradesh’s economic development. Industry experts view this contract as a significant step toward strengthening the state's power grid and reducing dependency on external sources.

Sources: Business Standard, Reuters, MarketScreener