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Adani Power's subsidiary Moxie Power Generation Ltd has secured a five-year contract to supply 558 MW of electricity to Tamil Nadu Power Distribution Corporation Ltd. The company emerged as the lowest bidder by quoting a tariff of INR 5.910 per unit, with supply scheduled to begin from April 1, 2026. The contract strengthens Adani Power's long-term revenue visibility, with over 95 per cent of its operating capacity now tied to medium- and long-term agreements. The deal is also expected to support grid stability and ensure reliable power supply across Tamil Nadu.
Adani Power's subsidiary, Moxie Power Generation Ltd (MPGL), has received a Letter of Award from Tamil Nadu Power Distribution Corporation Ltd (TNPDCL) for the supply of 558 MW (net) of electricity for a period of five years. Advertisement
The company operates a 1,200 MW thermal power plant in Tuticorin, Tamil Nadu, comprising two units of 600 MW each. With this award, both units of the plant are now covered under power supply agreements.
MPGL secured the contract after emerging as the lowest bidder in a competitive bidding process. It quoted a tariff of INR 5.910 per unit. Power supply under the agreement is scheduled to commence from April 1, 2026, an important future milestone for the project.
Adani Power, which has a total generation capacity of 18.15 GW, is currently the largest private thermal power producer in India. The company stated that more than 95 per cent of its total operating capacity is now secured under medium- to long-term contracts. This level of contracted capacity provides improved revenue visibility and reduces exposure to short-term fluctuations in merchant power markets.
In recent years, Adani Power has focused on expanding its contracted portfolio to reduce dependence on spot market sales, which are subject to price volatility. The company has indicated that it aims to achieve close to 100 per cent power purchase agreement tie-up for all its operational and under-commissioning plants over the coming years.
The newly awarded agreement is expected to add 558 MW of dependable power to Tamil Nadu's grid. The additional supply is likely to support stable electricity availability for households, commercial establishments and industries across the state. By securing power at a competitive tariff, the utility is expected to ensure more predictable procurement costs, which may help maintain affordable supply for consumers over the contract period.
Source PTI
FAQ
1. Which company secured the power supply contract?
Adani Power's subsidiary, Moxie Power Generation Ltd (MPGL), has received the Letter of Award for supplying 558 MW (net) of electricity. The contract has been awarded by Tamil Nadu Power Distribution Corporation Ltd (TNPDCL) for a period of five years.
2. What are the key terms of the contract?
MPGL emerged as the lowest bidder in a competitive process by quoting a tariff of INR 5.910 per unit. The supply of power is scheduled to begin from April 1, 2026, and will continue for five years under the agreed terms.
3. Which plant will supply the contracted power?
The electricity will be supplied from MPGL's 1,200 MW thermal power plant in Tuticorin, Tamil Nadu, comprising two units of 600 MW each. With this award, both units of the plant are now fully covered under power supply agreements.
4. How does this contract benefit Adani Power?
The agreement strengthens long-term revenue visibility, as more than 95 per cent of the company's 18.15 GW operating capacity is now secured under medium- and long-term contracts. This reduces exposure to volatility in short-term merchant power markets and improves financial stability.
5. What does the deal mean for Tamil Nadu's power supply?
The addition of 558 MW of dependable power is expected to support grid stability and ensure reliable electricity availability for households, businesses and industries across Tamil Nadu. It also provides the utility with predictable procurement costs over the five-year contract period.
6. What is Adani Power's broader contracting strategy?
In recent years, Adani Power has focused on increasing its power purchase agreement tie-ups to reduce reliance on spot market sales. The company aims to move towards near 100 per cent contracted capacity for its operational and upcoming plants to maintain stable revenues and long-term growth visibility.
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