Haryana-based developer ReNew Power has announced that it has signed a power purchase agreement (PPA) with the Solar Energy Corporation of India (SECI) for a round-the-clock (RTC) 400 MW electricity supply. SECI is a Central Government owned entity, which has an AA+ domestic debt rating by ICRA, a subsidiary of Standard & Poor’s.
The PPA for round-the-clock renewable electricity supply is the first-of-its-kind in India. The power will be supplied to New Delhi Municipal Council and Dadra & Nagar Haveli utility.
ReNew had emerged the winner to supply round-the-clock power last year in an auction conducted by SECI. Under the contract, it will supply the electricity in the first year at a tariff of INR 2.90/kWh (3.9 US cents). The tariff will increase by 3% per year for the first 15 years of the 25-year power supply deal secured by ReNew before becoming a fixed payment.
“As a typical solar/wind firm power renewable energy project in India has a lower PLF depending on site and technology selection, ReNew Power anticipates the 400 MW RTC project will require a combination of 900 MW of wind capacity and 400 MW solar, supplemented by battery storage,” read a statement by Renew Power.
“The project will be designed to operate at an 80% average annual plant load factor (PLF) and will have a minimum capacity utilization factor of 70% monthly, despite being a renewable energy project.”
The project cost is estimated at approximately US$ 1.2 billion.
ReNew Power will set up the wind and solar capacity across Karnataka, Maharashtra, and Rajasthan. It has already obtained requisite approvals to connect the project sites with the grid and has secured connectivity through the inter-state transmission system.
As of March 31, 2021, ReNew Power had a total capacity of approximately 10 GW of wind and solar energy projects across India, including commissioned and committed projects. It is backed by global investors like Goldman Sachs, CPP Investments, Abu Dhabi Investment Authority, GEF SACEF, and JERA.
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