In a significant development for Tamil Nadu’s power sector, Adani Power has announced that its wholly owned subsidiary, Moxie Power Generation Ltd (MPGL), has secured a Letter of Award (LoA) from the Tamil Nadu Power Distribution Corporation Ltd (TNPDCL). The contract involves the supply of 558 MW (net) of electricity for a duration of five years, beginning April 1, 2026.
Competitive Tariff and Reliable Supply
MPGL won the contract through a competitive bidding process, emerging as the lowest bidder by quoting a tariff of ₹5.91 per unit. The company stated that this competitive pricing is expected to ensure cost-effective power procurement for the state while strengthening long-term supply reliability.
The electricity will be supplied from MPGL’s 1,200 MW (2×600 MW) thermal power plant located in Thoothukudi (Tuticorin). With this agreement, both generating units of the plant are now backed by power purchase agreements (PPAs), improving capacity utilization and operational stability.
Strengthening Grid Stability in Tamil Nadu
The additional 558 MW of contracted power is expected to enhance grid stability and help meet growing demand across residential, commercial, and industrial segments in Tamil Nadu. Reliable long-term power arrangements are particularly important for the state, which has a strong industrial base and rising electricity consumption.
Revenue Visibility and Reduced Market Risk
Adani Power highlighted that more than 95% of its operational capacity is now tied up under medium- to long-term PPAs. This provides greater revenue predictability and reduces exposure to short-term fluctuations in merchant power markets.
The company aims to secure nearly 100% PPA coverage for all its operational and upcoming plants in the coming years, further strengthening its financial stability.
Expanding Generation Footprint
Adani Power currently operates a total installed capacity of 18,110 MW of thermal power across multiple states, including Gujarat, Maharashtra, Karnataka, Rajasthan, Chhattisgarh, Madhya Pradesh, Jharkhand, and Tamil Nadu. In addition, it operates a 40 MW solar power plant in Gujarat, supporting its diversified generation portfolio.
Consumer Impact
By locking in power at a competitive rate, the agreement is expected to benefit Tamil Nadu consumers through dependable and relatively affordable electricity supply over the next five years. The deal also reflects the ongoing emphasis on securing long-term contracts to ensure uninterrupted power for households, businesses, and industries.