Adani Electricity’s Mumbai tariffs are the lowest in the latest multi-year tariff order for FY24 and FY25.
Adani Electricity Mumbai Ltd. has received over 3,000 applications from the customers of rival Tata Power Ltd. for migration in the the last two months after state regulator’s multi-year tariff order brought down rates for the Adani Group company.
There has been migration requests for close to 350 million units of power from around 3,000 applicants across the commercial, industrial as well as residential household customers of Tata Power in Mumbai, according to people aware of the matter.
Since no new power cables are expected to be laid during the monsoon to win new customers, the migration is likely to increase further till October, the people quoted above said.
In the latest tariff order for FY24 and FY25, Adani Electricity has emerged with lowest tariffs in Mumbai while Tata Power tariffs were the highest. The Adani Group company also contracts around 30% renewable power of its overall requirement of 2,000 MW for Mumbai, bringing down costs.
Adani Electricity’s efforts towards increasing the share of renewables and optimising power-purchase costs have ensured that the tariff increase is the least across Maharashtra compared to Tata Power. This has led to high end consumers looking at migrating to Adani Electricity Mumbai.
It could be a reaction after the tariff order, Nilesh Kane, chief-Mumbai Distribution at Tata Power, said in response to BQ Prime’s queries. The company has requested their commercial and industrial customers to hold till July when Appellate Tribunal For Electricity is expected to deliver its order on Tata Power’s petition to stay the tariffs.
“The tribunal has completed the hearing and the order has been reserved for delivery after the summer holiday in July,” Kane said.
APTEL will resume work from July 1.
Adani Electricity sells around 9,500-10,000 million units of electricity in Mumbai, with over 50% market share. The company has increased the penetration of renewable electricity that it supplies in Mumbai to 30% from 3% earlier, and plans to take this to 60% by 2027.
The company is also setting up two high-voltage transmission corridors—1,000 kilo volt Kharghar-Vikhroli line by the end of this year, and another 1,000 KV Aarey-Kudus line by 2026—that will allow distributors to bring and integrate additional renewable power to Mumbai.
Adani Electricity has already tied up 700 MW of renewable power that comes at fixed 50% capacity utilisation factor with zero fuel adjustment charge and variable cost. This allows customers long-term tariff visibility.
Besides, it’s using power forecasting tools, such as artificial intelligence and machine learning to forecast future electricity demand with 98-99% accuracy. This helps Adani Electricity to optimise short-term power purchase cost and integrate renewable energy in the grid, the people quoted earlier said.
The company also sees strong demand in future to come from Mumbai Metro suburban lines, new data centers, and BEST electric vehicles as the utility plans to bring around 2,300 buses by next year.
This is expected to be around 200 MW in terms of power capacity, the people said. BEST further plans to add 5,000 electric buses to its fleet in future, which is a good opportunity for Adani Electricity, the people said.
Disclaimer: AMG Media Networks Ltd., a subsidiary of Adani Enterprises Ltd., holds 49% stake in Quintillion Business Media Ltd., the owner of BQ Prime.
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bqprime published this content on 16 Jun 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 16 Jun 2023, 10:56 AM IST .
