Adani Power shares in focus as Adani firm aims for 21,110 MW thermal generation capacity by FY29

Shares of Adani Power will be in focus on Tuesday morning after the Adani group company in an investor presentation said it was aiming to achieve a thermal generation capacity of 21,110 MW by FY29, with proposed brownfield projects and inorganic growth.

Adani Power has an existing capacity of 15,210 MW. It has committed  brownfield projects of 1,600 MW and proposed another 3,200 MW projects. Besides, it has proposed addition of 1,100 MW in inorganic thermal generation capacity, according to an investor presentation by the Adani Group power producer on the stock exchanges.

Adani Power said a majority of its domestic fuel requirements are tied-up under long-term and medium-term FSAs, supporting high availability under PPAs. In total, 81 per cent of the capacity is tied up in long term PPAs, most of which offer fuel cost pass through or tariff escalation, yielding excellent revenue visibility and cash flow stability.

It said 79 per cent of domestic fuel capacity is tied up in FSAs, adding that it has strategic synergies with sister concern's leadership position in logistic sector.

The Adani group firm said 74 per cent of its capacity is tied up in contracts incorporating adequate fuel cost recovery. Almost entire merchant/open capacity is located close to mine pitheads, providing logistics cost advantage, it added.

Adani Power also said that it sees net senior debt at Rs 26,690 crore in FY24 compared with Rs 24,350 crore in FY23. The deleveraging of balance sheet has been demonstrated by significant prepayment of senior debt, Adani Power said.