Adani Power Subsidiary Secures Major 558MW Power Supply Contract in Tamil Nadu
In a significant development for India's energy sector, Adani Power announced on Tuesday that its subsidiary, Moxie Power Generation Limited, has received a formal letter of award from the Tamil Nadu Power Distribution Corporation Limited (TANGEDCO). The contract entails the supply of 558 megawatts (net) of electricity over a five-year period, substantially strengthening Adani Power's portfolio of contracted capacity.
Competitive Bidding and Plant Details
Moxie Power Generation, which operates a substantial 1,200-megawatt power plant in Tuticorin, Tamil Nadu, emerged as the lowest bidder in a highly competitive tender process. The company secured the contract by quoting a competitive tariff of Rs 5.91 per unit of electricity. The Tuticorin facility comprises two units of 600MW each, making it a key asset in the region's power infrastructure.
With this new award, both units of the Tuticorin power plant are now fully committed under long-term power supply agreements. This strategic move ensures stable revenue streams for the plant and enhances grid reliability for Tamil Nadu.
Strengthening Adani's Operational Portfolio
Adani Power highlighted that this contract further solidifies its position in the power generation market. The company reported that over 95% of its total operational capacity of 18.15 gigawatts is now secured under medium- to long-term contracts. This high percentage of contracted capacity provides financial stability and predictable cash flows, which are crucial for sustained operations and future investments in the energy sector.
Benefits for Tamil Nadu's Power Grid
The additional 558MW of power supply is expected to deliver multiple benefits to Tamil Nadu:
- Enhanced Power Availability: The contract will significantly boost the state's electricity supply, helping to meet growing demand from both residential and industrial consumers.
- Improved Grid Stability: A reliable and consistent power supply from the Tuticorin plant will contribute to greater stability in Tamil Nadu's electricity grid.
- Competitive Tariffs: Households and industries in the state will benefit from receiving reliable power at the competitive rate of Rs 5.91 per unit.
The power purchase agreement is scheduled to commence from April 1, 2026, marking a forward-looking commitment to Tamil Nadu's energy needs. This contract represents a strategic partnership between private power generation and public distribution, aimed at ensuring energy security for one of India's most industrially active states.
