After a five-year hiatus, a new long-term electricity supply contract (PPA) for thermal energy was signed, with Madhya Pradhesh`s regulator approving the 25-year contract between Pench Thermal Energy (MP), a unit of Adani Power, and mp Power Management Company (MPMCL), the National Electricity Board. Nevertheless, despite the effects of Covid-19, APL has been able to secure the electricity supply of its power plants smoothly and expects electricity demand to recover in the near future. In its latest annual report, GautamAdani, President of Adani Group, said: “As we deal with the disruptions in economic activity caused by the effects of a longer global blockade according to Covid-19, the realization that our nation must seize a unique opportunity to strengthen its industrial base by increasing its dependence on domestic production and attracting investment in high-quality export-oriented sectors could be recognized. Adani Power Limited (APL) has become the country`s largest thermal power producer in less than 15 years. The company, which was predetermined in electricity generation in 2006 with its Mundra thermal power plant (TPP) in Gujarat, has expanded its presence throughout the energy value chain, with a generating capacity of 12.45 GW. The agreement, the first thermal signature in india since the last PPA of its kind in Kerela 5 years ago, was won by Adani Power with an offer price of 4.79/unit (Rs 2.90/unit in fixed charge and Rs 1.89/variable royalty unit) by Adani Power. The company`s flagship project, the 4,620 MW Mundra TPP in Kutch District, is one of the largest site projects in the world. It was phased in 2009-12. It consists of four sub-critical 330 MW and five 660 MW overcritical units.
The project has several initial evaluations. The first block (660 MW) of the project was the first overcritical production group commissioned in the country and completed in a record time of 36 months, from its creation to synchronization. The TPP is also the first registered in the country under the Clean Development Mechanism of the United Nations Framework Convention on Climate Change. However, the project, which meets some of its coal needs through imports from Indonesia, has experienced difficulties as a result of higher coal prices in Indonesia in 2010 and underutilization of fuel costs. After several years of litigation before the Central Electricity Regulatory Commission (CERC), the Electricity Appeal Court (APTEL) and the Supreme Court, as well as the intervention of the powerful Gujarat government commission, ceRC approved in April 2019 the revision of the PPP pass on the increased costs of imported coal for mundra TPP, giving it the necessary relief. In addition, the company operates the 40 MW solar bitta project in Kutch, for which it has signed a PPA with Gujarat UrjaVikas Nigam Limited. In September 2019, MPMCL launched a tender for the long-term purchase of electricity from a new 1,320 MW plant, to be built in the state as part of a public-private partnership.