Lucknow: Adani Power Ltd has been awarded a contract to supply 1,500 MW of electricity to Uttar Pradesh for 25 years at a levelised tariff of Rs 5.383 per unit, following a competitive bidding process.
Power Deal Backed by Cabinet Approval
The Uttar Pradesh Cabinet, led by Chief Minister Yogi Adityanath, approved the power purchase proposal in a recent meeting, aiming to address the state’s projected energy demand over the next decade. The electricity will be sourced from a 2×800 MW thermal power project that Adani Power is set to develop within the state. Seven companies participated in the tender floated in October 2024, but Adani emerged as the lowest bidder.
Tariff Structure and Agreement Details
According to state energy minister AK Sharma, the final tariff consists of a fixed charge of Rs 3.727 per unit and a variable fuel charge of Rs 1.656 per unit. The Power Purchase Agreement (PPA) will be signed between Uttar Pradesh Power Corporation Ltd (UPPCL) and Adani Power under the long-term procurement plan.
Addressing Future Power Demand
The state government has identified a growing demand for electricity and estimates an additional requirement of 10,795 MW of thermal power by 2033–34. The decision to procure 1,500 MW is positioned as a preparatory step to meet this anticipated shortfall and support the state’s long-term energy planning.
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