New Delhi, Sep 15 (PTI) Adani group has won a bid to supply 6,600 MW of bundled renewable and thermal power to Maharashtra for the long term after its quote of Rs 4.08 per unit beat the likes of JSW Energy and Torrent Power, sources said.
Its bid for the bundled renewable and thermal energy supply for 25 years was almost a rupee lower than the cost at which Maharashtra currently procures electricity and will help meet future electricity requirements of the state, two sources with direct knowledge of the matter said.
Supplies are to start in 48 months from the date of award of the letter of intent.
As per the bid conditions, Adani Power will supply solar power at a fixed cost of Rs 2.70 per unit throughout the entire supply period, while that from coal will be indexed to coal prices.
Maharashtra State Electricity Distribution Company (MSEDCL), in March, floated a unique tender for sourcing 5,000 MW of electricity generated from sunlight and 1,600 MW of power generated from coal.
That tender was floated just ahead of the model code of conduct for the Lok Sabha elections kicking in, and it was awarded to Adani before the announcement of the assembly elections in the state.
The tender combined solar power with thermal electricity to meet peak energy demand and that during non-solar hours (like night hours or monsoon/winter months).
It gave equal energy weightage to electricity generated from renewable energy and that from coal. Bidders were asked to quote a unified tariff for the supply of 6,600 MW of electricity (5,000 MW from solar and 1,600 MW from thermal).
Adani Power quoted Rs 4.08 per unit to win the contract, according to sources said.
Its bid compares to Rs 4.36 per unit quoted by the second lowest bidder, JSW Energy, and Rs 4.70 per unit average procurement cost of Maharashtra last year.
The tariff is about Re 1 per unit lower than the Maharashtra Electricity Regulatory Commission (MERC) approved average power purchase cost of Rs 4.97 per kWh (unit) for 2024-25.
In all, four companies participated in the tender for the electricity supply for 25 years.
The weighted average tariff for thermal and solar projects will help achieve a lower effective power tariff. Separate PPAs will be executed for solar and thermal projects. However, the aggregate power procurement will be complied in spirit even after that, sources said.
The bundled procurement is to meet future electricity requirements of the state, a source said, adding that against MSEDCL's contracted capacity of 27,877 MW, peak demand is projected at 35,573 MW in 2028-29 and 39,884 MW in 2032-32.
According to sources, MSEDCL designed the tender in a way to get equal energy weightage to solar and thermal components. 5,000 MW of solar power equals 1,600 MW of thermal electricity in terms of capacity utilisation factor (CUF). The ratio between thermal and renewable power is 1:3.
The combination ensures that thermal meets the base load and cheaper solar electricity is available to the grid, sources said, adding that bundling renewable and thermal power was to drive efficiencies of scale.
Sources said Adani will be paid a fixed price for renewable energy for 25 years, while there is an escalation price in the electricity produced from coal, but it more or less balances out after accounting for 1.5-2 per cent depreciation.
Against the regulatory requirement under Renewable Purchase Obligation (RPO), 32 per cent of Maharashtra's power demand is to be met from solar sources by 2028.
Currently, the figure stands at only 12 per cent, and so the procurement of 5,000 MW of solar power will help in filling that requirement.
Adani Power, India's largest private-sector thermal power generator, has a generation capacity in excess of 17 GW, which is rising to 31 GW by 2030.
Its sister company, Adani Green Energy Ltd, is the country's largest renewable energy company with a generation capacity of 11 GW, which is being expanded to 50 GW by 2030.