Posted on May 12, 2025, by Niftynews
The Adani Power share price surged by a strong 7% during early morning trades on Monday, May 12, 2025, after the company announced a major development: it secured a Letter of Award (LOA) for a 1,500 MW power supply agreement with Uttar Pradesh Power Corporation Limited (UPPCL).
This marks a major milestone for the power giant as it further strengthens its footprint in the Indian energy sector by addressing the rising power demands of Uttar Pradesh.
Let’s explore what this deal means for Adani Power future, its share price movement, and how investors are reacting to the news.
📈 Adani Power Share Price Movement Today
On May 12, the Adani Power share price opened at ₹545 and quickly climbed to an intraday high of ₹552, representing a gain of 7% in morning trades. The rally comes after the company made its major announcement about the power supply contract.
This upward movement is significant because it reverses recent sideways movement in the stock and has sparked renewed interest among institutional and retail investors.
📃 Key Details of the 1500 MW Power Supply Agreement
On May 10, 2025, Adani Power informed the stock exchanges that it has received a Letter of Award (LOA) from Uttar Pradesh Power Corporation Limited (UPPCL) to supply 1,500 MW of thermal power for a period of 25 years.
🔧 Project Specifications:
- Capacity: 2×800 MW (Net supply of 1,500 MW)
- Project Type: Greenfield, Ultra-supercritical Thermal Power Plant
- Location: Uttar Pradesh
- Execution Model: DBFOO (Design, Build, Finance, Own, and Operate)
- Tariff Rate: ₹5.383 per unit
- Supply Duration: 25 years
The project was awarded following a competitive bidding process, making it a noteworthy win for Adani Power amidst rising demand for power infrastructure.
🌍 Strategic Importance of the Deal
This 1500 MW thermal project isn’t just a win for Adani Power—it plays a crucial role in Uttar Pradesh’s long-term energy planning. The company estimates the state’s power demand will surge by 11,000 MW by FY34, fueled by rapid urbanization, industrialization, and infrastructure modernization.
CEO Commentary:
“This project reinforces Adani Power’s commitment to meeting India’s energy demands sustainably and efficiently. We are investing ~$2 billion into setting up the plant and infrastructure, which will support employment and economic development in the region.”
— S.B. Khyalia, CEO, Adani Power
The plant is expected to generate 8,000–9,000 jobs during the construction phase and 2,000+ jobs during operations.
💼 Economic and Employment Impact
The investment of approximately ₹16,700 crore (~$2 billion) is expected to boost local economies in Uttar Pradesh by:
- Generating direct employment in plant operations and construction
- Creating indirect jobs across logistics, infrastructure, and supply chains
- Enhancing regional power infrastructure and grid reliability
This aligns with India’s broader energy policy, which aims to balance renewables with base-load thermal capacity to ensure energy security.
🧪 Ultra-Supercritical Technology: Cleaner Thermal Energy
The power plant will utilize ultra-supercritical boiler technology, which significantly reduces emissions compared to older coal-based power plants. While thermal energy remains vital for India’s power grid stability, the adoption of low-emission technologies is crucial to meeting climate goals.
Benefits of Ultra-Supercritical Plants:
- Higher energy efficiency (~42–45%)
- Lower fuel consumption per unit of electricity
- Reduced carbon dioxide and particulate emissions
📊 Market Reaction and Investor Outlook
The news of the LOA for 1500 MW has been met with positive investor sentiment. Analysts believe this win provides strong earnings visibility for the next two decades and positions Adani Power for long-term contract stability.
Why the Stock Jumped:
- Long-term revenue guarantee via the 25-year PPA
- Confidence in future cash flow generation
- Large-scale project indicating robust order book
📉 Historical Stock Performance Snapshot
| Date | Share Price (₹) | % Change |
|---|---|---|
| May 10, 2025 | 515.00 | — |
| May 12, 2025 (High) | 552.00 | +7.18% |
| YTD (2025) | +14.5% | Bullish |
📢 Analyst View: Is This a Buy Opportunity?
Many market experts believe Adani Power share price still holds upside potential, especially if the company continues to secure long-term power agreements.
Analysts expect the stock to trade in a range of ₹540 to ₹580 in the near term, with a potential breakout to ₹600+ if market sentiment remains bullish and execution of the project progresses on schedule.
🧠 Should You Invest in Adani Power Now?
Pros:
- Stable cash flow from 25-year PPA
- Strategic investment in a power-hungry state
- Positive technical momentum
- Rising demand for thermal + base-load capacity
Cons:
- Exposure to coal prices and regulatory risks
- Project execution risks over multiple years
- Broader market volatility
📌 Conclusion: Adani Power Share Price Strengthens on Project Win
The 7% surge in the Adani Power share price is more than just a reaction to good news—it reflects long-term confidence in the company’s ability to deliver large infrastructure projects and meet India’s growing energy demand.
With a robust investment pipeline, competitive tariff structure, and sustainable energy focus, Adani Power is poised for steady growth. Investors seeking exposure to the Indian power sector may find this a compelling opportunity, especially as the company prepares to power Uttar Pradesh for decades to come
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