Adani Power Wins 3.2 GW Assam Coal Power Tender, Plans $5 Billion Expansion

Adani Power Limited has announced it is the lowest bidder for a 3.2 gigawatt (GW) coal power supply tender issued by Assam. The bid has received approval from the state electricity commission, and the company anticipates receiving the formal award notification soon. This tender is part of a larger strategy where Adani Power is bidding for over 22 GW of thermal power capacity across various states, including Rajasthan, Uttar Pradesh, Gujarat, and West Bengal. These states are seeking to secure consistent, long-term power supply to meet growing energy needs and complement intermittent renewable sources.

Adani Power is committed to a significant expansion, planning to invest approximately $5 billion in new coal-powered facilities. The company's objective is to increase its total power generation capacity from the current 18 GW to 42 GW by fiscal year 2032. Already, 8.5 GW is secured through long-term Power Purchase Agreements. The overall planned expansion will require an investment of around ₹2 lakh crore, with the initial 12 GW expected to become operational by fiscal year 2030. To facilitate this growth, Adani Power has pre-ordered all necessary boilers, turbines, and generators, with staggered deliveries scheduled over the next 38 to 75 months.

Separately, Adani Power reported a significant reduction in its outstanding power dues from Bangladesh, which have narrowed to approximately 15 days of supply, a notable decrease from the nearly $2 billion owed earlier this year.

Impact: This news is highly positive for Adani Power. Winning a substantial tender and outlining a massive capacity expansion plan signals strong future revenue growth and market position. The reduction in dues from Bangladesh also improves financial liquidity. The stock is likely to react positively to these developments.

Impact Rating: 8/10

Difficult Terms: Gigawatt (GW): A unit of electrical power equal to one billion watts. Coal Power Supply Tender: An official invitation from a government or utility company to potential suppliers to bid on providing electricity generated from coal-fired power plants. Regulatory Approval: Official consent granted by a government agency or regulatory body. Baseload Capacity: The minimum level of electricity demand required over a period of time. Power plants providing baseload operate consistently to meet this demand. Intermittent Renewable Generation: Electricity produced from sources like solar and wind power that are not continuously available and depend on weather conditions. Fiscal Year: A period of 12 months used for accounting purposes; in India, it typically runs from April 1 to March 31. Power Purchase Agreements (PPAs): Contracts between an electricity generator and a buyer that set the terms for electricity sales at a fixed price. Commissioned: Brought into operation or service.