This has been achieved in the auction for 400 MW RE (Renewable Energy) Projects with Round the Clock (RTC) supply conducted by central PSU Solar Energy Corporation of India Ltd.
The e-reverse auction got first year tariff quote of Rs 2.90/kWh from ReNew Solar Power Pvt. Ltd. which bagged the contract in a closely fought auction process which saw the lowest tariff drop by 69 paise over the course of almost 3 hours.
“Golden chapter added in Indian Renewable Energy story, as e-RA for 400 MW RE Projects with Round the Clock (RTC) supply conducted by SECI Ltd results in historic 1st year tariff of Rs.2.90/kWh. MNRE makes a new beginning towards firm, schedulable & affordable RTC supply through 100% RE power”, said Power and Renewable Energy Minister R.K. Singh.
Despite the current market conditions, the tender for 400 MW capacity had received a strong participation, with 4 bidders submitting their bids for a total capacity of 950 MW.
Three out of the four bidders, namely ReNew Solar Power, Greenko Energies and HES Infra were finally shortlisted for the e-Reverse Auction. Ayana Renewable Power was the fourth bidder.
Power from this project is targeted to be sold to the NDMC and Daman & Diu and Dadra & Nagar Haveli, with each entity offtaking a capacity of 200 MW.
There was no ceiling tariff for the projects, and the developers are free to set up the project on a pan-India basis. The projects under this tender will be set up under the Build-Own-Operate model.
What makes the tariff a historic one, is the fact that this tender provides for a Round the Clock energy supply from 100% RE based energy generation sources, such as wind and solar PV, combined with storage.
The developer will be provided a maximum time period of 24 months from the Effective Date of PPA. The first year tariff shall be escalated @3% on an annual basis, up to the 15th year of the 25-year term of the PPA. As a result, the effective tariff for the said project amounts to Rs 3.59/kWh.
Compared to the tariffs witnessed in conventional sources of generation, this tariff offers a much better proposition for the disocms to meet their energy demand through 100% RE supply.