Adani Power to build new thermal plant in Uttar Pradesh after securing 1,500 MW supply contract

The Uttar Pradesh cabinet has approved a power purchase agreement (PPA) to supply 1,500 megawatts of power from a thermal power plant between Adani Power and the Uttar Pradesh Power Corporation Limited (UPPCL) for a period of 25 years, according to AK Sharma, the state's minister of energy and urban development.

"We decided to purchase a total of 1500 MW (ex-bus) power from a 2x800 MW (1600 MW) thermal power project based on competitive bidding. Under this, seven companies came forward and participated in the bidding processes. Adani Power Ltd has won a contract to supply 1500 megawatts from a thermal power plant in the northern state of Uttar Pradesh at ₹5.383 per unit," Sharma told in a press briefing in Lucknow.

Sharma also added that the state requires an additional 10,795 MW of thermal power by 2033-34, and this agreement is a key step in fulfilling that demand. The location of the 1600 MW plant will be in the Sonbhadra district, and will be constructed in the next six years.

 In February, Adani Saur Urja Limited, a wholly-owned subsidiary of Adani Green Energy , secured a major contract from UPPCL for the procurement of 1,250 MW energy storage capacity from Pumped Hydro Storage Projects, Adani Green Energy had said in a regulatory filing.

Under the awarded contract, the annual fixed cost payable for the project is set at ₹76,53,226 per MW per year, excluding taxes. The agreement will remain in effect for 40 years from the project's commercial operation date, the company said in its filing.

In July last year, the Uttar Pradesh government granted in-principal approval for the 1200 megawatt pumped storage power plant (PSP) project of THDC India in the Robertsganj tehsil of Sonbhadra district, at an estimated cost of ₹6600 crore. At the time, the government accorded in-principal approval for 10 PSP plants. Out of these, eight would be in Sonbhadra.

The Sonbhadra district is also home to two of the largest power plants in the state, namely the Rihand Thermal Power Station, with an installed capacity of 3000 MW, and is one of India's largest coal-fired power plants. The Anpara Thermal Power Station—located near Anpara village in the Sonebhadra district—has a total generating capacity of 2630 MW, according to the website of the state-run Uttar Pradesh Rajya Vidyut Utpadan Nigam Limited (URVUNL).

The UPRVUNL is overseeing the construction of several major thermal power plants. These include the 1,980 MW Ghatampur Thermal Power Station in Kanpur district—a joint venture with Neyveli Lignite Corporation—and the 1,320 MW Jawaharpur Super Thermal Power Station in Etah district. Additionally, the 1,320 MW Obra C Thermal Power Plant in Sonbhadra district and the 660 MW Panki Thermal Power Station in Kanpur are under development. Collectively, these projects are expected to add over 4,000 MW to the state's capacity by 2025.