Ministry of New and Renewable Energy
Indian Renewable Energy (RE) sector has witnessed history today, as the e-Reverse Auction (e-RA) for 400 MW RE (Renewable Energy) Projects with Round the Clock (RTC) supply.
It was concluded at a first-year tariff of Rs.2.90/kWh, said the Ministry of New and Renewable Energy on 9 May 2020.
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 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, Minister of State for Power and New & Renewable Energy R. K. Singh, said in a tweet, “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.”
The tender for 400 MW capacity had received a strong participation, with four bidders submitting their bids for a total capacity of 950 MW.
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.
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.
As per the bid conditions, the developer is mandated to fulfil an annual minimum CUF (Capacity Utilisation Factor) requirement of 80%, and a monthly CUF requirement of 70%. Failure to achieve the above requirements in terms of the PPA, would result in removal of tariff escalation in the subsequent year(s), until the above requirements are achieved in a particular year.
In terms of the above requirements, the tender therefore achieves a major milestone towards the MNRE’s and SECI’s efforts in realizing a firm, assured schedulable RE power supply model, which may inevitably, replace a conventional project, at a more viable tariff, said the Ministry. fiinews.com
