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Adani Power Secures LoA from MSEDCL for 1,600 MW Long-Term Electricity Supply

The company secured the contract through a competitive bidding process, offering a tariff of Rs5.30 per kilowatt-hour for supplying power under a long-term agreement.

Adani Power has announced that it has received a Letter of Award (LoA) from Maharashtra State Electricity Distribution Company Limited (MSEDCL) for the supply of 1,600 MW of electricity under a long-term arrangement.

The electricity will be generated from one of the company’s upcoming ultra-supercritical thermal power projects and is expected to be delivered under a proposed 25-year power supply agreement beginning in the financial year 2030–31.

According to the company, the contract was awarded through a competitive bidding process in which it offered a combined tariff of Rs5.30 per kilowatt-hour.

Commenting on the development, S. B. Khyalia, Chief Executive Officer of Adani Power, stated that the award highlights the company’s competitive cost structure and its ability to provide reliable baseload power. He added that the company remains committed to meeting India’s growing electricity demand through long-term partnerships and supporting Maharashtra’s development objectives with dependable and cost-effective energy supply.

The new contract further strengthens the company’s portfolio of long-term supply agreements secured during the current financial year. The company reported that it has won five such contracts in FY2025–26, with a combined capacity of about 10,400 MW.

Following this latest award, the company said that long-term power supply agreements now cover approximately 13.3 GW of its total 23.8 GW generation capacity currently under development.

More than 95 percent of the company’s operational capacity of around 18.15 GW is already tied to medium- and long-term supply contracts. Additionally, over 55 percent of its upcoming generation pipeline has been secured under 25-year agreements.

The tender issued by MSEDCL also includes a pre-arranged coal linkage, ensuring a stable fuel supply to support reliable power generation over the duration of the contract.

As part of its broader expansion strategy, Adani Power aims to increase its generation capacity to 41.87 GW by FY2031–32, up from the current 18.15 GW. The expansion will be supported by a capital expenditure programme estimated at around Rs2 trillion and is intended to address rising electricity demand driven by economic growth, urbanisation, and industrial development.