MUMBAI: Greenko and ReNew Power on Friday won the auction to supply 1200 MW of clean power after Solar Energy Corporation of India (SECI) concluded the world’s largest renewable-cum-energy storage power purchase tender through a reverse auction method.While Hyderabad headquartered Greenko has been awarded 900 MW after quoting a peak power tariff rate of Rs 6.12 (~$0.086)/ kWh, ReNew Power will supply the residual 300 MW. Its bid for peak tariff came at Rs 6.85 (~$0.096)/ kWh.The renewable power from these projects will be firm, predictable, and will meet the peak requirements of several north India state DISCOMs, which otherwise have to depend on spot markets without price, supply or network assurance, and are prepaid.“It’s a unique tender and first of its kind where the bidders will be required to deliver firm renewable energy. It’ll definitely help in improving the grid integration of renewables and improve the acceptability of green power by distribution companies,” said Sumant Sinha , CMD, ReNew Power.Power from pumped hydro and battery projects, coupled with renewables, will offer lowest ever peak tariff globally, believe industry players. This is also lower than the recent stressed thermal projects tender conducted by PTC where the tariff of Rs 4.24/kWh (Cents 5.89/kWh) was discovered, for only 3 years supply, whereas the tariff discovered under this tender are fixed for a 25 year period.In the US, a market with more advance storage technologies, similar bids have seen price discoveries of around $120-$140/MWh (mega watt hour). In India, in comparison Friday’s bids translate to a $85/MWh. Most analysts therefore feel this is a game changer as India can now replace conventional sources with high quality renewable power to meet the new energy demands of the country. It is now also possible to dispatch with higher reliability due to storage technologies at a cost that are either at par or sometimes even cheaper than fossil fuels or even gas.The tender sought a contracted capacity of 1200 MW, with assured supply of 600 MW for 6 hours daily during peak demand hours (that is, 5.30-9.30 AM and 5.30 PM-12.30 midnight), on day-ahead on-demand basis. This will require storage capacity (pumped hydro and battery) of at least 3000 MWh, and appropriate renewable energy generation capacity.This power will help the DISCOMs of India meet their renewable power purchase obligations at a 25-year fixed price, with no uncertainty. The Central government has mandated all DISCOMs in the country to purchase at least 21% of their total energy requirements from renewable sources by FY 2021-22. Additionally, the DISCOMs will not have to bear the burden of transmission charges and losses on this renewable power.“With Greenko’s experience In development of solar, wind and hydro and with digital technologies, we could deliver this nature of energy at a globally competitive price,” said Anil Chalamalasetty, CEO, Greenko Group. “ Amidst of Prime Minister’s vision of 450 GW of renewables and with Indian energy market moving from supply driven to demand driven, these type of energy contracts of renewables with storage will globally place India in an elite group. Current capabilities of renewables for Round The Clock(ReRTC) with better cost and quality will displace conventional energy which is eminent in current climate emergency.In August 2019, SECI issued the tender for setting up 1.2 GW of renewable projects connected with the interstate transmission system (ISTS) charges and with a guaranteed peak power supply. Projects were expected to have at least two components – an energy storage system (ESS) component and a renewable energy generating component. The RE generating component can be a solar or wind energy system or a hybrid of both. In its tender, SECI specified that projects selected under this would be eligible for two-part tariffs: peak and Off-Peak and the energy generated during the off-peak hours would be eligible for a flat tariff payment Rs 2.70 (~$0.03)/kWh while the energy generated during peak hours would be purchased at the tariff discovered through e-reverse auction.SECI has tendered 12.2 GW under the ISTS program as per industry consultants Mercom and has auctioned 7.64 GW under seven tranches.