Essar Power Ltd, a subsidiary of Essar Energy plc, has commissioned the second unit of its 2x225-mw Vadinar Phase-2 power plant in Gujarat. The coalfired plant, with a total 510 mw capacity, is now fully commissioned, providing power and process steam to Essar Oil's nearby Vadinar oil refinery, which has a capacity of 20 million tpa. The addition of coal fired generation will significantly lower generation costs and result in improved refinery margins. Power will also be sold to Essar Steel and into the merchant market, a statement by Essar Power said. Essar Power's installed generation capacity now stands at 3,310 mw. Of this, 2,110 mw is captive capacity supplying power to Essar's refinery and steel plants.