Adani Green Energy Set to Sign 5 GW Solar Power Purchase Agreement with Maharashtra

Adani Green Energy to sign a 5 GW solar PPA with MSEDCL at a tariff of INR 2.70/kWh for 25 years, advancing India's renewable energy transition.

Adani Green Energy Ltd (BOM:541450), a leading player in India’s renewable energy sector, is preparing to sign a major Power Purchase Agreement (PPA) with Maharashtra State Electricity Distribution Company Limited (MSEDCL) for 5 GW of solar power. This milestone comes as part of the Maharashtra government’s strategic procurement of 1.6 GW of thermal and 5 GW of solar power, following a competitive bidding process.

Solar Power for 25 Years at a Competitive Tariff

Under the agreement, the solar power will be supplied at a fixed tariff of INR 2.70 (USD 0.032/EUR 0.029) per kWh for the next 25 years. The projects, once finalized, will be developed over the course of three years, solidifying Adani Green Energy’s footprint in the renewable energy sector. This PPA marks a crucial step in addressing India’s growing energy demands while advancing towards a more sustainable future.

Role of Adani Power in India's Energy Future

Adani Power Ltd (BOM:533096) played a pivotal role in securing both the thermal and solar components of the bidding. The thermal capacity will be executed on a "design, build, finance, own and operate" basis, ensuring that India’s energy mix continues to include conventional power sources that are critical for grid stabilization. Anil Sardana, Managing Director of Adani Power, emphasized the importance of balancing economic growth with sustainability, noting that conventional power will continue to play a vital role in meeting base load power requirements.

Adani's Renewable Energy Push

This PPA represents a significant win for Adani Green Energy, which has been at the forefront of India's ambitious renewable energy transition. With 5 GW of solar power to be added, the company is poised to contribute significantly to India’s renewable energy targets, while the fixed tariff ensures affordability for consumers in Maharashtra.