Adani Green Bags 1,250 MW Pumped Hydro Storage Project in UP

25 Feb 2025 , 08:15 PM

On Tuesday, February 25, Adani Green Energy Ltd announced to the exchanges that its wholly-owned subsidiary, Adani Saur Urja (LA) Ltd has received a Letter of Award (LOA) from Uttar Pradesh Power Corporation Ltd (UPPCL).

The LOA has been issued for procuring 1,250 MW of energy storage capacity from Pumped Hydro Storage Projects. This capacity was awarded to it through an e-Reverse Auction held by UPPCL. It is a 40-year contract with a fixed annual cost of ₹76.53 lakh per MW, excluding taxes, starting from the COD (Commercial Operation Date).

The awarded capacity will also facilitate the expansion plans of the company for its renewable energy portfolio, Adani Green Energy said in a regulatory filing.

The Annual Fixed Cost for the awarded capacity is ₹76,53,226/MW/Year, exclusive of Applicable Taxes, for a period of 40 years from the Date of Commercial Operation. The move strengthens Adani Green Energy’s position in the country’s renewable energy sector by giving it the capability for pumped hydro storage.’

Adani Green Energy has posted an 85% year-on-year rise in its consolidated net profit for Q3FY25 of ₹474 crore against ₹256 crore in the same period last year. The revenue from operations of the company also surged 2.3% YoY to ₹2,365 crore in Q3FY25 from ₹2,311 crore in the last year. However, the firm’s standalone EBITDA dipped 4% to ₹1,601 crore from ₹1,666 crore a year ago. Consequently, the EBITDA margin shrank to 67.7%, compared to 72.1% during the same period last year.

The recent development follows Adani Green Energy’s long-term strategy of multiplying its renewable investments and storage infrastructure to cater to the growing demand for clean energy in India.