New Delhi, Feb 25 Adani Saur Urja (LA) Limited, a wholly-owned subsidiary of Adani Green Energy, on Tuesday said it has secured a major contract from the Uttar Pradesh Power Corporation Limited (UPPCL) for energy storage capacity.
"Adani Saur Urja (LA) Limited, a Wholly-owned Subsidiary of the Company, has received a Letter of Award (LOA) from Uttar Pradesh Power Corporation Limited (UPPCL) for procurement of 1,250 MW energy storage capacity from Pumped Hydro Storage Projects," Adani Green Energy said in a regulatory filing.
The capacity was secured through an e-reverse auction conducted by the UPPCL.
Under the awarded contract, the annual fixed cost payable for the project is set at Rs 76,53,226 per MW per year, excluding taxes.
The agreement will remain in effect for 40 years from the project's commercial operation date (COD), the company said in its filing.
The project, Panaura PSP will be located in Uttar Pradesh's Sonbhadra district and is expected to be completed within the next six years.
India's clean energy goal necessitates the development of large utility-scale storage projects to integrate renewables into the grid and provide round-the-clock renewable energy. Aligned to the endeavour, Adani Green Energy has diversified its portfolio to include energy storage solutions in addition to its existing solar, wind and hybrid projects, a company statement said.
As one of the most cost-competitive, mature and scalable technologies, hydro PSP holds significant potential. Hydro PSPs use electrons generated from solar in the day to pump water and meet peak-time energy demand at night through sustainable sources. Apart from being time-tested and domestically available, PSPs are also the cleanest and safest technology to store energy. They offer numerous benefits such as grid stability, peak shaving, and flexibility in energy management. Additionally, hydro PSPs provide frequency regulation and reserve generation, making them a critical part of a robust and resilient energy infrastructure, it added.
Adani Green has firm plans to add over 5 GW hydro PSP capacity by 2030. The company has already commenced the construction of its hydro-pumped storage projects of 500 MW at Chitravathi river, in Andhra Pradesh, 1,500 MW at Tarali in Maharashtra and 1,800 MW at Gandikota in Andhra Pradesh.
Adani Green Energy's share price closed at Rs 841.05 on Tuesday with an increase of Rs 5 or 0.60 per cent from the previous close.
Meanwhile, another company of diversified Adani Group, Adani Power Limited (APL) on Monday informed the bourses that it has received a Letter of Intent (LOI) to acquire Vidarbha Industries Power Limited.
The power company was chosen as the successful resolution applicant in the Corporate Insolvency Resolution Process (CIRP) for Vidarbha Industries Power Limited.
Adani Power's resolution plan was approved by the Committee of Creditors, the Adani Group company confirmed in its stock exchange filing on February 24.
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