In a significant development for the power sector in India, Adani Power Limited (APL) has been awarded a major power supply contract by the Uttar Pradesh Power Corporation Limited (UPPCL). The Uttar Pradesh Cabinet has officially approved a Power Purchase Agreement (PPA) with APL for the supply of 1,600 megawatts (MW) of electricity to the state for a period of 25 years.
Background: Competitive Bidding Process
This major development follows a competitive bidding process conducted in October 2024, as part of Uttar Pradesh’s initiative to boost power availability and infrastructure. Adani Power emerged as the lowest bidder, fulfilling all the technical and financial requirements mandated by UPPCL. The competitive nature of the process highlights the growing demand for efficient and cost-effective power generation in India’s most populous state.
New Thermal Power Plant in Uttar Pradesh
As part of the agreement, Adani Power will set up a new thermal power plant within Uttar Pradesh. The plant is expected to significantly enhance the state’s power generation capacity and help meet the growing electricity demands of both urban and rural regions. The exact location of the plant is yet to be disclosed, but it is likely to be strategically positioned to maximize distribution efficiency across the state.
This thermal power plant will likely use advanced, environmentally compliant technologies to ensure minimal environmental impact while delivering reliable power output. With a capacity of 1,600 MW, it will be one of the key facilities in the state’s long-term energy infrastructure roadmap.
Strategic Importance for Uttar Pradesh
Uttar Pradesh, being one of India’s most industrial and populous states, faces enormous demand for consistent and uninterrupted power supply. The new agreement is expected to support industrial growth, digital infrastructure, and residential needs, contributing to overall economic development.
The move also aligns with the state government’s commitment to strengthening its power infrastructure, improving ease of doing business, and supporting the Make in India initiative.
Terms of the Power Purchase Agreement (PPA)
Under the 25-year long-term PPA, Adani Power will supply electricity at a competitively determined tariff, making it a cost-efficient solution for the state. The financial terms of the agreement were decided through a transparent auction process, ensuring accountability and value for public money.
This agreement will not only secure a stable power supply for the state but also reduce the risk of power shortages, especially during peak consumption periods such as summer months and festive seasons.
Adani Group’s Growing Footprint in the Energy Sector
This isn’t the first time that the Adani Group has collaborated with the Uttar Pradesh government on power-related projects. In February 2025, Adani Saur Urja (LA) Limited, a wholly-owned subsidiary of Adani Green Energy Limited, secured a substantial contract from UPPCL for energy storage capacity.
The company received a Letter of Award (LoA) from UPPCL for the procurement of 1,250 MW of energy storage capacity through Pumped Hydro Storage Projects. This marks a significant milestone in India’s efforts to integrate renewable energy with storage capabilities to ensure round-the-clock power availability.
Adani Green Energy had officially announced the development in a regulatory filing, stating that the project would provide critical support in stabilizing grid operations and improving renewable energy integration.
Pumped Hydro Storage: A Clean Energy Enabler
The Pumped Hydro Storage (PHS) projects awarded to Adani Saur Urja are expected to act as energy reservoirs, storing electricity generated during low-demand periods and releasing it during peak demand times. These projects will complement renewable energy installations like solar and wind, offering much-needed stability to the grid.
With the addition of storage infrastructure, Uttar Pradesh will be better equipped to manage fluctuations in energy demand and maintain grid reliability without depending heavily on fossil fuels.
A Dual Approach: Conventional and Renewable Synergy
Together, these two major projects—Adani Power’s 1,600 MW thermal power plant and Adani Green’s 1,250 MW storage capacity—represent a strategic dual approach to power generation in the state. While the thermal plant ensures reliable, base-load power, the pumped hydro storage initiative enhances the flexibility and efficiency of renewable energy usage.