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Adani Power receives LoA for 2,400 MW greenfield thermal project

Adani Power has received a Letter of Award (LoA) for 25 years long term procurement of electricity from Bihar State Power Generation Company (BSPGCL), which it will supply from a 2,400 megawatts (MW) (800 MW X 3) greenfield ultra-super critical plant to be set up at Pirpainti in Bhagalpur district of Bihar, according to a BSE filing.

BSPGCL awarded the LoA to APL on behalf of North Bihar Power Distribution Company Ltd. (NBPDCL) and South Bihar Power Distribution Company Ltd. (SBPDCL), the two state utilities. This would be followed by signing of the Power Supply Agreement (PSA) between the entities.

Earlier, Adani Power had emerged winner in a tightly contested Tariff Based Competitive Bidding process called by BSPGCL, offering the lowest supply price of Rs 6.075 per KWh. The company will invest around $3 billion in setting up the plant and the related infrastructure. The project will generate direct and indirect employment of around 10,000 – 12,000 during the construction phase and around 3,000 once in operation.

India’s power demand is expected to grow rapidly in the coming years, with peak demand rising from current around 250 gigawatts (GW) to around 400 gigawatts (GW) by 2031-32, and 700+ GW by 2047, propelled by rapid industrialization, urbanization, and a growing population. Thermal power, with its inherent ability to provide large-scale, reliable, and roundthe-clock power, will continue to remain the backbone of our energy security, providing critical base-load and grid balancing support. To meet this ever-increasing power demand, government has envisaged an additional around 100 GW of thermal capacity to be added by 2035.