Speed Post News Network
New Delhi : Indian Renewable Energy (RE) sector witnessed history on May 9, 2020, as the e-Reverse Auction(e-RA) for 400 MW RE (Renewable Energy) Projects with Round the Clock (RTC) supply, was concluded at an astounding first year tariff of Rs 2.90/kWh. The bidding was conducted by Solar Energy Corporation of India Ltd., a Central PSU under Ministry of New and Renewable Energy.
The capacity of 400 MW has been awarded to M/s ReNew Solar Power Pvt. Ltd. after a closely fought auction which saw the lowest tariff drop by 69 paise over the course of almost 3 hours.
Complementing SECI for this effort, R K Singh, Union Minister of State (IC) for Power and New & Renewable Energy & Minister of State, Skill Development and Entrepreneurship, said in a tweet on May 8, 2020, evening, “Golden chapter added to 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.”
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 4 bidders, namely M/s ReNew Solar Power Pvt. Ltd., M/s Greenko Energies Pvt. Ltd and M/ HES Infra Pvt Ltd. were finally shortlisted for the e-Reverse Auction. M/s Ayana Renewable Power Pvt. Ltd. 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 off taking 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, according to a PIB release.
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.