The share price of India’s largest private sector power generator is surging amid news that it received a Letter of Award (LoA) to supply 1,600 MW of electricity under a 25-year power supply agreement.
Over the past five trading days, Adani Power Limited (APL) soared by over 11%. The stock also hit ₹157.44 on Tuesday, up by 2.19% from the previous closing price of ₹154.06.
LOA to Supply 1,600 MW of Power
In a statement, APL said that it has received a LoA from Maharashtra State Electricity Distribution Company Ltd (MSEDCL) to supply 1,600 MW of power from one of its upcoming ultra-supercritical thermal power projects (USCTPP).
MSEDCL issued the LoA after APL emerged as the lowest-tariff bidder in a bidding process with an offer to provide power at a combined tariff of ₹5.30/kWh. The Ahmedabad-based electric company will start supplying power under the proposed Power Supply Agreement (PSA) from the financial year 2030-2031.
Critical to India’s Energy Security
More than 95% of the company’s operating capacity of 18.15 GW is now under medium-to-long-term PSAs. Over 55% of APL’s upcoming capacity of 23.8 GW is also secured under 25-year PSAs.
Adani Power CEO S.B. Khyalia said that long-term and reliable capacity addition is crucial in ensuring India’s energy security as power demand continues to rise steadily.
“This LoA from MSEDCL reflects the competitiveness of Adani Power’s cost structure, our ability to deliver dependable baseload power and our commitment to supporting India’s growing electricity needs through long-term partnerships,” he said. “As India’s leading private power producer, we are keen to support Maharashtra’s and the nation’s ambitious development goals with reliable and affordable electricity supply.”
The company in its statement said that India is seeing a rapidly growing electricity demand due to economic expansion, industrial growth, urbanization and increased household electrification.
Source: https://coinpaper.com/15496/adani-power-shares-rise-after-1-600-mw-supply-lo-a-from-msedcl