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Adani Power Wins 558 MW Tamil Nadu Contract, Boosting Grid Stability

Adani Power's subsidiary, Moxie Power Generation Ltd, has received a Letter of Award from the Tamil Nadu Power Distribution Corporation to supply 558 MW of power for five years. The supply, starting April 1, 2026, was secured through a competitive bid at a tariff of Rs 5.910 per unit. The agreement will provide reliable power to consumers, enhance grid stability, and secure long-term revenue for the company. This deal means over 95% of Adani Power's operating capacity is now tied to medium or long-term contracts.

Key Points: Adani Power to Supply 558 MW Power to Tamil Nadu from 2026

  • 558 MW power for 5 years
  • Tariff of Rs 5.910 per unit
  • Supply starts April 2026
  • Enhances grid stability
  • Long-term revenue visibility
2 min read

Adani Power to supply 558 MW high-quality power to benefit Tamil Nadu consumers

Adani Power subsidiary secures 5-year deal to supply 558 MW of power to Tamil Nadu at Rs 5.91/unit, enhancing grid stability and consumer benefits.

"This provides significant long-term revenue visibility and also derisks the company from short-term market volatility. - Adani Power statement"

Ahmedabad, Feb 24

Adani Power on Tuesday said that its subsidiary Moxie Power Generation Ltd has received a Letter of Award from Tamil Nadu Power Distribution Corporation for supply of 558 MW power for a period of five years.

The power supply agreement is expected to benefit Tamil Nadu consumers by providing an additional 558 MW of reliable and high-quality power, enhance grid stability, and support uninterrupted electricity supply to households, businesses and industries.

Moxie Power operates a 1,200 MW (2X 600 MW) power plant in Tuticorin, Tamil Nadu.

It emerged as the lowest bidder in a tightly contested bid by offering a tariff of Rs 5.910 per unit, with supply starting April 1, 2026, said Adani Power, India's largest private power producer with a generation capacity of 18.15 GW.

Now, both units of the plant have power supply agreements, and more than 95 per cent of Adani Power's total operating capacity is secured with medium to long-term contracts, said the Adani Group company.

"This provides significant long-term revenue visibility and also derisks the company from short-term market volatility. The company aims to achieve almost 100 per cent PPA (power purchase agreement) tie-up for all its operational and under commissioning plants over the coming years," according to a company statement.

By securing power at a competitive tariff, consumers are expected to benefit from more affordable and dependable energy in the years ahead.

Adani Power has an installed thermal power capacity of 18,110 MW spread across 12 power plants in Gujarat, Maharashtra, Karnataka, Rajasthan, Chhattisgarh, Madhya Pradesh, Jharkhand, and Tamil Nadu, apart from a 40 MW solar power plant in Gujarat.

Adani Power reported a 5.3 per cent rise in its continuing profit before tax (PBT) for the third quarter (Q3) of FY26. The company's PBT stood at Rs 2,800 crore in Q3 FY26 compared to Rs 2,659 crore in the same period last financial year, supported mainly by lower finance costs and stable operating performance.

- IANS

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Reader Comments

P
Priya S
Good to see investment in Tamil Nadu's power infrastructure. 558 MW is significant. The tariff of Rs 5.91 per unit seems competitive on paper. My only concern is the concentration of so much capacity with one private group. Healthy competition is essential for consumers in the long run.
S
Siddharth J
Finally some positive news on the power front! 🎉 Tuticorin plant is a major asset. Long-term PPAs bring stability. Hope this translates to fewer power cuts in Chennai suburbs this summer. The focus should now be on improving the distribution network too.
A
Andrew M
Working in the renewable sector here. While thermal power provides baseload, I hope this deal doesn't slow down Tamil Nadu's impressive push for solar and wind. The state has huge potential. A balanced energy mix is the key to sustainable growth.
K
Kavya N
The article says supply starts April 2026. That's a long wait. What happens till then? The state discoms need to work on immediate solutions as well. Summer is always a challenge.
V
Vikram M
Solid business move by Adani. Securing long-term contracts de-risks their operations. For TN, utilizing an existing plant within the state is efficient. Win-win if managed transparently. The proof will be in the pudding—consistent supply at the agreed price.

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