New Delhi: Adani Power has secured a long-term contract to supply 1,500 MW of electricity to Uttar Pradesh at Rs 5.38 per unit for 25 years. The Uttar Pradesh Cabinet has approved the signing of a Power Purchase Agreement (PPA) between Uttar Pradesh Power Corporation Ltd (UPPCL) and Adani Power for supply of thermal power for 25 years, a statement issued by the UP governmet on Tuesday said. It added that the bid submitted by Adani Power was the lowest in a tariff-based competitive bidding process.

Adani Power to supply electricity from plant in UP

Uttar Pradesh had floated a tender to secure power from a 1,600 MW thermal power plant to be set up in the state. To meet this demand, it sought bids for procuring 1,500 MW out of a 2x800 MW (1,600 MW) project in October last year. Adani Power quoted Rs 3.727 per unit as fixed charges and another Rs 1.656 per unit as fuel charges, with the cumulative total cost of supply coming to Rs 5.383 per unit (kWh). The power will be supplied from a new plant that will be set up in Uttar Pradesh.

The UP government projects an additional requirement of 10,795 MW of electricity to meet the energy needs of the state by 2033-34.