Adani Power wins deal to supply 1,500 MW to Uttar Pradesh; plans to set up $2-billion greenfield plant

Adani Power has emerged as the winning bidder to supply 1,500 megawatt (MW) of thermal power to Uttar Pradesh. This power will be supplied from a new greenfield ultra-supercritical power plant to be set up by the Adani Group company under the design, build, finance, own, and operate (DBFOO) model in the state.

The billionaire Gautam Adani-led company plans to invest $2 billion (approximately ₹16,700 crore) to set up a 2x800 MW (1,500 MW net) ultra-supercritical thermal power plant and the associated infrastructure in Uttar Pradesh. The country’s largest private sector thermal power generator aims to begin supplying power from this plant by 2029-30.

As part of the contract, the company will supply power at a highly competitive tariff of ₹5.383 per unit from a greenfield 2x800 MW (1500 MW net) ultra-supercritical power plant to be set up under the Design, Build, Finance, Own, and Operate (DBFOO) model in the state,” it said in a release on May 10.

“This is further to the Uttar Pradesh cabinet approving the project earlier this month. The company will now sign a long-term Power Supply Agreement (PSA) with Uttar Pradesh Power Corporation Ltd. (UPPCL) under the Letter of Award (LoA) received today,” the release noted.

S.B. Khyalia, Chief Executive Officer, Adani Power, said that the company would invest $2 billion in setting up the plant and related infrastructure. The project is expected to generate direct and indirect employment of 8,000-9,000 during the construction phase and 2,000 once in operation.

“We are happy to have won the competitive bid to supply 1,500 MW power to UP state and feel privileged to play a leading role in meeting the state’s rapidly growing power demand. We plan to set up a modern and low emission ultra-supercritical plant in UP and aim to begin supplying reliable and high-quality power by FY30,” he said.

The release noted that thermal power demand in UP is seen rising by 11,000 MW by 2033-34 owing to factors like industrialisation, urbanisation, and modernisation. This 1,500 MW order is part of the government’s initiative to meet that future demand.

This is second major PSA bid the company has won in the last one year, after receiving the composite 6,600 MW (1600 MW thermal and 5000 MW solar) order from Maharashtra State Electricity Distribution Company Ltd (MSEDCL) in September 2024, which subsequently has been converted into a PSA.

As of date, Adani Power has an installed thermal power capacity of 17,510 MW spread across 11 power plants in Gujarat, Maharashtra, Karnataka, Rajasthan, Chhattisgarh, Madhya Pradesh, Jharkhand, and Tamil Nadu, apart from a 40 MW solar power plant in Gujarat.