Adani Power Ltd., India’s largest private thermal power producer, has secured a major contract to supply 1,500 megawatts (MW) of electricity to the state of Uttar Pradesh. The company announced on Monday that it won the contract through a competitive bidding process.
The power will come from a new ultra-supercritical thermal power plant with a capacity of 2×800 MW (1,500 MW net). The plant will be developed under the Design, Build, Finance, Own, and Operate (DBFOO) model. Electricity from the project will be delivered at a tariff of ₹5.383 per unit.
This development follows approval from the Uttar Pradesh state cabinet earlier this month. Adani Power is now set to sign a long-term Power Supply Agreement (PSA) with the Uttar Pradesh Power Corporation Ltd. (UPPCL). The agreement is based on the Letter of Award (LoA) issued to the company.
“We are happy to win this bid to supply 1,500 MW of power to Uttar Pradesh,” said Mr. S.B. Khyalia, CEO of Adani Power. “This project allows us to support the state’s fast-growing electricity needs. We plan to build a modern, low-emission thermal plant and start power delivery by financial year 2030.”
Mr. Khyalia also said that Adani Power will invest around $2 billion to develop the plant and supporting infrastructure. The project is expected to create 8,000 to 9,000 jobs during construction, and around 2,000 permanent jobs once the plant becomes operational.
Uttar Pradesh is expected to see a rise in thermal power demand of about 11,000 MW by the year 2033–34. Factors like industrial growth, urban expansion, and increasing modernization are expected to drive this increase. The 1,500 MW supply from Adani Power is part of the government’s effort to prepare for this growing demand.
This is the second large PSA contract Adani Power has secured within a year. In September 2024, the company received a Letter of Intent from the Maharashtra State Electricity Distribution Company Ltd. (MSEDCL) for a combined 6,600 MW supply. That agreement included 1,600 MW of thermal and 5,000 MW of solar power. The Letter of Intent has since been converted into a formal PSA.
