India’s ReNew Power has won the country’s first tender to provide continuous (24/7) green energy, bidding for an initial price of INR 2,900 per MWh. The Solar Energy Corporation of India (SECI), a central public sector undertaking, conducted e-reverse auction for the 400 MW renewable energy projects with round-the-clock supply.
The independent power producer (IPP) beat three other developers — Greenko, HES Infra, and Ayana Renewable Power — to win the country’s first of such auction to provide ‘round-the-clock’ clean power.
The company is required to supply power from a 400 MW portfolio of wind, solar PV, or hybrid projects, paired with storage to ensure a steady supply of power to utilities like New Delhi Municipal Corporation (NDMC) and Daman & Diu and Dadra & Nagar Haveli. Each of the two entities will be 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 tariff of INR 2,900 per MWh is applicable for the first year of production, and will rising by 3 per cent each year, until the 15th year of a 25-year PPA with the utilities. The auction regulator, SECI has stated that the developer will receive an average tariff of INR 3,590 per MWh for the output over the 25-year term. At this price, distribution companies would be better meeting their energy demand with renewable sources than “conventional sources of generation”, SECI added. 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 per cent RE based energy generation sources, such as wind and solar PV, combined with storage.