Power consumption in India is increasing and is expected to continue to climb in the future years, driven by industrial and household demand. 

This is good news for Adani Power's prospects. The corporation operates eight strategically positioned power plants around the country.

While India's shift to renewable energy is well begun, it is moving at a snail's pace. As a result, thermal power generators have a brighter future.

According to the corporation, supercritical and ultra-supercritical generating units account for around 87 percent of total generation units.

This is a type of coal-fired power station that is more efficient and lucrative than standard coal-fired power plants.

The reliance on thermal power also gives chances for power corporations, notably Adani Power, to enter into long-term power purchase agreements

Around 75% of Adani Electricity's power generation is secured under long-term power purchase agreements as of FY21.

However, given the stock's high valuation, investors should exercise caution before investing in Adani Power.