Adani Power subsidiary receives LoA to supply 558 MW power to Tamil Nadu for five years

The company said, "its subsidiary Moxie Power Generation Ltd. (MPGL) has received a Letter of Award (LoA) from Tamil Nadu Power Distribution Corp. (TNPDCL) for supply of 558 MW (net) of power for a period of five years."

Adani Power, India's largest private power producer with a generation capacity of 18.15 GW, said the award marks a significant step in strengthening its long-term power supply portfolio and ensuring stable revenue visibility.

Moxie Power Generation Ltd. operates a 1,200 MW power plant, consisting of two units of 600 MW each, located in Tuticorin, Tamil Nadu.

The company emerged as the lowest bidder in a competitive bidding process by offering a tariff of Rs 5.910 per unit. The supply of power under this agreement is scheduled to begin from 1 April 2026.

With this development, both units of the Tuticorin plant now have power supply agreements in place. The company stated that more than 95 per cent of Adani Power's total operating capacity is now secured under medium to long-term contracts.

According to the company, this achievement provides significant long-term revenue visibility and reduces exposure to short-term market volatility. It also strengthens the company's position in ensuring predictable cash flows and operational stability.

Adani Power further stated that it aims to achieve nearly 100 per cent power purchase agreement (PPA) tie-up for all its operational and under commissioning plants over the coming years. The company noted that securing long-term agreements remains a key part of its strategy to ensure stable growth and operational efficiency.

The company also highlighted that the power supply agreement is expected to benefit consumers in Tamil Nadu by providing an additional 558 MW of reliable and high-quality power. This will help enhance grid stability and support uninterrupted electricity supply to households, businesses, and industries in the state.

Additionally, by securing power at a competitive tariff of Rs 5.910 per unit, consumers are expected to benefit from more affordable and dependable energy in the coming years. (ANI)