Adani Power to Invest $2 Billion in Uttar Pradesh’s Energy Future
Newzdaddy Business Updates
Synopsis of the Article:
Adani Power Ltd. won a competitive bid to supply 1500 MW of thermal power to Uttar Pradesh.
The power will be supplied from a greenfield 2×800 MW Ultra-supercritical power plant set up under the DBFOO model.
Adani Power bid the lowest tariff of Rs 5.383 per unit in the tender process.
The project, costing ~$2 billion, will create around 8,000–9,000 jobs during construction and 2,000 jobs during operation.
A long-term Power Supply Agreement (PSA) will be signed with Uttar Pradesh Power Corporation Ltd. (UPPCL).
This project is part of Uttar Pradesh’s initiative to meet its rising power demand, expected to grow by 11,000 MW by 2033-34.
This is Adani Power’s second major PSA win in two years, following a 6,600 MW contract with Maharashtra State Electricity Distribution Company Ltd. (MSEDCL) in 2024.
Adani Power Ltd., India’s largest private sector thermal power producer, has bagged a significant contract to supply 1,500 MW of power to Uttar Pradesh. The power will be generated from a new ultra-supercritical power plant set that will be built in the state. Adani Power won the contract by offering the lowest tariff of Rs 5.383 per unit in a competitive bidding process, making it the most cost-effective choice for the state.
The upcoming power plant will have a 2×800 MW capacity, summing up to 1,500 MW of net output. This state-of-the-art project will follow the Design, Build, Finance, Own, and Operate (DBFOO) model, ensuring a smooth and efficient operation managed entirely by Adani Power. The Uttar Pradesh government approved the project earlier this month, paving the way for Adani Power to sign a long-term Power Supply Agreement (PSA) with the Uttar Pradesh Power Corporation Ltd. (UPPCL).
The project comes with a massive investment of $2 billion, reflecting Adani Power’s commitment to building modern and low-emission thermal power plants. According to Mr. S.B. Khyalia, CEO of Adani Power, the company aims to provide reliable and high-quality power to meet the growing energy demands of Uttar Pradesh.
One of the most remarkable aspects of this project is its potential for job creation. During its construction phase, it is expected to generate around 8,000–9,000 jobs, providing a significant boost to the local economy. Once the plant is operational, it will continue to support approximately 2,000 permanent jobs, contributing to sustainable employment in the region.
Uttar Pradesh’s demand for thermal power is projected to rise by a staggering 11,000 MW by 2033-34. This surge is driven by rapid industrialization, urbanization, and modernization across the state. Adani Power’s project aligns with the government’s vision to meet this growing demand efficiently and sustainably.
The Ultra-supercritical technology being used in this plant is known for its higher efficiency and lower emissions compared to traditional coal-fired power plants. This aligns with Adani Power’s broader goal of delivering cleaner and greener energy solutions while supporting India’s energy transition.
This recent win marks the second major Power Supply Agreement (PSA) secured by Adani Power in the past two years. In September 2024, the company clinched a significant 6,600 MW project with Maharashtra State Electricity Distribution Company Ltd. (MSEDCL). This massive deal included 1600 MW of thermal power and 5000 MW of solar power, further showcasing Adani Power’s diversified energy portfolio.
With this new project in Uttar Pradesh, Adani Power is set to solidify its presence in India’s thermal power sector, while also contributing significantly to the state’s energy security and economic growth.
