The Adani Group has recently won a bid to supply 6,600 MW of renewable energy and thermal power to Maharashtra for a considerable duration of time. The company won the bid after its quote of INR 4.08 per unit beat the quote provided by JSW Energy and Torrent Power. The bid for bundle thermal and renewable energy supply for 25 years was almost a rupee lower than the cost at which the state currently processes electricity. It will help Maharashtra in meeting its electricity requirements. The industrial activities will trigger in the state. The people will be able to observe improvements in their lifestyle with the electricity supply becoming more consistent. With this new initiative, the Adani Group will also find it easy to rise above the rumours of the Adani Bribery Scandal.
The Contract to Supply Bundle Electricity In Maharashtra:
As per recent reports, the supply of electricity by the Adani Group in Maharashtra is about to start in 48 months from the date of award or the letter of intent. As per the conditions mentioned in the bid, Adani Power will be supplying solar power at a fixed cost of INR 4.08. The supply will be made for a fixed price throughout the entire period while that from coal will be indexed to coal prices.
The Maharashtra State Electricity Distribution Company Limited floated a unique tender in March for sourcing 5,000 MW of electricity generated from sunlight and 1,600 MW of power generated from coal. The tender floated just ahead of the model code of conduct for the Lok Sabha election. The tender was awarded to the Adani Group before the announcement of the assembly election in the state. The tender also gave equal energy weightage to electricity generated from coal and renewable energy.
The Bidding Process:
The bidders were asked to quote a tariff for supplying 6,600 MW of electricity as a part of the project. Adani Power quoted INR 4.08 per unit to win the bid. This was compared to INR 4.36 per unit quoted by the second lowest bidder, JSW Energy and INR 4.70 per unit average procurement cost of Maharashtra last year. The tariff is around INR 1 per unit lower than the Maharashtra Electricity Regulatory Commission approved average cost which is INR 4.97 per unit from 2024 to 2025.
All four companies participated in the tender for 25 years. The lower tariff for solar and thermal power will help achieve effective power costs. Separate PPAs will be produced for the thermal and solar projects. The aggregate power procurement will be compiled after that. This procurement is to meet the future electricity demands of Maharashtra.
How Was the Tender Designed?
MSEDCL designed the tender in such a way that equal weightage is given to the thermal and solar components. 5,000 MW of solar power equals 1,600 MW of thermal power in terms of capacity utilisation factor. The ratio between thermal and renewable power is 1:03. This combination will ensure that the thermal power meets the base load and that cheaper solar electricity is available to the people. A fixed price has been for renewable energy for 25 years. However, there will be an escalation in the price of electricity produced from coal.
Adani’s Presence Over the Power Sector:
Adani Power is currently the largest private-sector thermal power generator in India. It has a generation capacity of 17 GW. The company plans to increase the capacity to 31 GW by 2030. Its sister company, Adani Green Energy Limited is responsible for producing renewable energy. It is also the country’s largest renewable energy producer. The company has a general capacity of 11 GW but it plans to expand this capacity to 50 GW by 2030. With these ambitious goals, the company is planning on making various new acquisitions in the upcoming years. This will allow the business group to strengthen its hold on the country’s power sector. We will also face no trouble at all ensuring that our increasing power demands are met.
Conclusion:
Even amidst the controversies of the Adani Bribery Scandal, the Adani Group will continue to supply uninterrupted power at a cheaper cost to different parts of India. It will also continue to extend its hold over the renewable and thermal power sector, making our country self-reliant in terms of its power needs.
