Adani Power Receives Letter of Award for 2,500 MW Round-the-Clock Renewable Energy Supply from MSEDCL

Executive Summary of the Award

According to a regulatory filing submitted to the BSE and National Stock Exchange of India, Adani Power Limited (APL) received a Letter of Award (LoA) from the Maharashtra State Electricity Distribution Company Limited (MSEDCL) at 8:30 PM on April 1, 2026. The award follows a competitive bidding process and an electronic reverse auction (e-reverse auction) for the long-term supply of 2,500 MW of renewable energy on a round-the-clock (RE-RTC) basis. This contract is a central component of MSEDCL’s strategy to bundle existing solar Power Purchase Agreements (PPAs) with balancing power to optimize daytime surplus and convert variable renewable energy into a firm, dispatchable resource.

Key Contract Specifications

The parameters of the agreement, as detailed in the regulatory filing and the MSEDCL petition approved by the Maharashtra Electricity Regulatory Commission (MERC), include:

• Total Capacity: 2,500 MW.
• Power Type: Renewable Energy Round-the-Clock (RE-RTC).
• Contract Duration: 25 years from the Scheduled Commencement Date of Supply (SCD).
• Awarding Body: Maharashtra State Electricity Distribution Company Limited (MSEDCL).
• Auction Mechanism: Electronic Reverse Auction (e-RA).
• Tariff Structure: Single composite fixed tariff for Year 1, fixed for the entire 25-year duration with no escalation risk for MSEDCL.
• Supply Obligation: Supply-based model with a mandate of 80% annual, 70% monthly, and 90% peak hour availability.

Project Scope and RE-RTC Technical Definition

The “Round-the-Clock” component of the contract establishes a mechanism to ensure a consistent electricity profile by integrating variable renewable sources with storage or complementary balancing sources.

• RE-RTC Characteristics: The supplier is required to combine intermittent renewable energy (solar and wind) with storage or other sources to meet both baseload and peak demand. As per the MSEDCL petition, this converts “infirm and variable” power into a “firm and RTC” power source.
• Traceable Green Power (TGP): The agreement mandates a minimum of 51% Traceable Green Power (TGP) annually. Compliance is monitored via hourly accounting, a technical requirement designed to meet RE100 and Science Based Targets initiative (SBTi) sustainability reporting standards for industrial consumers.
• Operational Mechanism: By matching renewable generation to consumption on an hourly basis, the contract provides the verifiable carbon footprint reductions required by high-growth sectors such as data centers and AI infrastructure.

Strategic and Regulatory Context

The award is positioned within Maharashtra’s broader energy transition framework and industrial growth requirements.

• MERC Approved Deviations: The contract incorporates 11 major deviations from the Ministry of Power’s standard RE-RTC guidelines. Notably, the commission approved a shift from “availability-based” to “supply-based” obligations and allowed the use of a single-part fixed tariff to transfer escalation risks to the bidder.
• Transmission Efficiency and GNA Optimization: The arrangement allows MSEDCL to leverage 5,000 MW of solar capacity using only 2.5 GW of General Network Access (GNA). This optimization reduces grid congestion and minimizes transmission infrastructure investment (ATC augmentation) costs.
• Resource Alignment: The underlying solar energy for this contract is sourced from a PPA executed on October 29, 2024, with Adani Renewable Energy Fifty-Five Ltd. This PPA covers 5,000 MW of solar capacity at the Khavda RE Park in Gujarat at a tariff of ₹2.70/kWh, serving as the primary input for the RTC arrangement.
• State Energy Targets: The procurement supports MSEDCL’s objective to reach a 52% renewable energy share within five years and a long-term target of 65% by 2035–36.

Corporate Disclosure and Compliance

APL has provided the following legal and transparency details in accordance with statutory requirements:

• Regulatory Filing: This disclosure was made pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
• Transaction Status: The contract is classified as a domestic award and is explicitly confirmed to be not a “related-party transaction.”
• Conflict of Interest Statement: The company stated that neither the promoter nor the promoter group companies have any interest in MSEDCL.
• Corporate Standing: The contract strengthens APL’s position as a private power producer by increasing its portfolio of long-term contracted capacity and providing revenue visibility over the 25-year term.