Adani Green Signs 25-Year Solar Power Pact with UPPCL
In a significant stride for India’s clean energy sector, Adani Green Energy Ltd (AGEL) has announced a 25-year power purchase agreement (PPA) with Uttar Pradesh Power Corporation Limited (UPPCL) to supply 400 megawatts (MW) of solar power. This long-term agreement underscores AGEL’s growing leadership in solar power development and its contribution to India’s renewable energy goals.
The agreement was signed through Adani Green Energy Sixty Nine Ltd, a wholly-owned step-down subsidiary of AGEL. The 400 MW capacity will be sourced from a grid-connected solar photovoltaic (PV) project located in the sun-rich state of Rajasthan. The tariff for the PPA has been competitively fixed at INR 2.57 per kilowatt-hour (kWh), reflecting AGEL’s ability to deliver cost-effective renewable power at scale.
400 MW Project to Boost Renewable Energy in Uttar Pradesh and Rajasthan
This solar project exemplifies inter-state green energy collaboration, with Rajasthan’s solar potential powering homes and businesses in Uttar Pradesh. The project will support UPPCL’s mandate to enhance clean energy adoption and reduce reliance on fossil fuel-based electricity.
With the implementation of this project, Uttar Pradesh will move closer to its target of increasing renewable energy in the state’s energy mix, while Rajasthan continues to cement its position as a hub for utility-scale solar generation.
Financial Strength Underpins Expansion
The PPA comes on the heels of AGEL’s stellar financial performance for the fiscal year 2024-25. The company reported a 23% year-on-year jump in power supply revenue, climbing to INR 9,495 crore from INR 7,735 crore in the previous fiscal.
EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) rose by 22% to INR 8,818 crore, showcasing operational efficiency and strong project execution. The EBITDA margin stood at an impressive 91.7%, indicating exceptional cost control and profit generation.
Cash profits also grew by 22%, reaching INR 4,871 crore. These financial metrics reflect AGEL’s sound business fundamentals and its capacity to invest aggressively in India’s clean energy future.
Operational Capacity Soars
AGEL added a massive 3,309 MW of new renewable energy capacity in FY 2024-25, marking a 30% increase in its operational base. With this addition, AGEL’s total operational capacity has reached 14.2 gigawatts (GW), placing it among the top renewable energy companies in Asia.
This rapid growth not only enhances India’s renewable energy capacity but also signals the private sector’s critical role in fulfilling national commitments to carbon reduction and energy security.
Supporting India’s Net-Zero Ambitions
Adani Green’s 400 MW project is part of a broader narrative of India’s push toward a sustainable energy future. As part of its international climate commitments, India aims to achieve 500 GW of non-fossil fuel capacity by 2030 and reach net-zero emissions by 2070.
Solar power, being abundant and scalable, plays a pivotal role in this transition. With companies like AGEL leading the charge through competitive, large-scale deployments, the country is well on its way to achieving these ambitious targets.
Employment and Regional Development
Projects of this magnitude bring with them extensive socioeconomic benefits. The 400 MW project is expected to create numerous jobs during both construction and operation phases, promoting local employment in Rajasthan.
Additionally, the availability of stable, green electricity to UPPCL will improve the power situation in Uttar Pradesh, supporting industries, businesses, and households alike.
Technological Leadership and Grid Integration
AGEL is known for deploying cutting-edge solar PV technologies, advanced inverters, and AI-powered energy management systems across its installations. The Rajasthan project is expected to follow the same high standards of technological implementation, ensuring long-term efficiency and reliability.
Grid integration is a key aspect of this project, with dedicated transmission infrastructure to ensure seamless power transfer from the project site in Rajasthan to the UPPCL grid in Uttar Pradesh.
Strategic Vision and Execution
This new PPA is part of AGEL’s long-term strategy to scale up its renewable portfolio and solidify its leadership in the Indian energy market. The company has consistently demonstrated its ability to plan and execute large-scale renewable projects with speed, precision, and profitability.
By locking in a 25-year PPA at a fixed rate, AGEL ensures predictable revenue streams and financial stability, which is crucial for long-term investors and stakeholders in the renewable energy space.
Future Outlook
The signing of the 400 MW PPA with UPPCL reaffirms Adani Green Energy’s role as a cornerstone of India’s energy transition. As the company continues to expand its capacity and deepen its sustainability agenda, it is expected to drive innovation, create green jobs, and reduce India’s dependence on imported fossil fuels.
With over 14 GW of capacity already operational and a pipeline of ambitious projects across solar, wind, and hybrid models, AGEL is poised to play a defining role in shaping the energy landscape of 21st-century India.
As state utilities like UPPCL turn to private sector leaders for reliable and affordable green power, such partnerships will be vital in meeting both state-level and national sustainability objectives.
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