Adani Power aims to double its generation capacity to 3,960 mw in the current fiscal and sell at least three-quarters of the electricity through long-term agreements to insulate itself from volatility in merchant power rates , chief financial officer Prabal Banerji , said. The Ahmedabad-based utility is implementing 16,500 mw of power generation projects across different locations in India. This includes 4,620 mw project at Mundra in Gujarat and a 3,300 mw project at Tiroda in Maharashtra.
"We will scale up the capacity at Mundra to 2,640 mw and also commission a 660 mw unit at Tiroda in Maharashtra by the end of the fiscal. We will try to commission another 660 mw at Tiroda in the year," Banerji told ET.
The company has achieved financial closure for projects aggregating to 13,200 mw so far and hopes to tie up funds for the balance 3,300 mw unit, which is coming up at Bhadreshwar in Gujarat by June 2012.
"We have ensured that more than 80% of our sales are through power purchase agreements so that we are not affected by the fluctuation of merchant power prices," Banerji said.
Typically, merchant power, which is sold in the short-term market, fetches higher tariff than power purchase pact. In 2010-11, Adani Power's average merchant tariff was 4.77 a unit, while the average tariff on power sold on long term basis was 2.79 unit.
But the average realisation on merchant power sales declined to 4.40 a unit in the fourth quarter 2010-11 from 6.25 a unit in the same quarter a year ago.
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