Greenko Group and ReNew Power won the auction conducted by the Solar Energy Corporation of India (SECI) for 1.2 GW of solar, wind, and energy storage projects with guaranteed peak power supply.

While Greenko has been awarded 900 MW, ReNew Power has won 300 MW of projects. Greenko Group won the bid at a peak power tariff rate of ₹6.12 (~$0.086)/ kWh, and ReNew Power won at ₹6.85 (~$0.096)/ kWh.

Sumant Sinha, CMD, ReNew Power told Mercom, “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.”

In August 2019, SECI issued the tender for setting up 1.2 GW of renewable projects connected with the ISTS and with a guaranteed peak power supply (ISTS-VII). 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 system, a wind energy system, or a hybrid system of both technologies. In its tender, SECI specified that projects selected under this RfS would be eligible for two-part tariffs: Peak Tariff and Off-Peak Tariff. Energy generated during the off-peak hours would be eligible for a flat tariff payment ₹2.70 (~$0.03)/kWh while the energy generated during peak hours would be purchased at the tariff discovered through e-reverse auction.

The weighted average is based on the normative capacity utilization factor of 35% as mandated by SECI.

One of the bidders commented on the auction result saying, “The DISCOMs are quite excited about this auction result. If you see in the historical contracts, the average power purchase cost (APPC) is about ₹4 (~$0.06)/kWh, and new thermal is around ₹5-7 (~$0.07-0.09)/kWh. The rates quoted in this auction are very competitive. DISCOMs procure renewables as their main power source and they do not have the burden of CTU (central transmission utility) waiver and use this power to meet their renewable purchase obligations as well. They don’t have the thermal burden and the weighted average is as low as ₹4.04 (~$0.057)/kWh for Greenko and ₹4.3 (~$0.06)/kWh for ReNew Power. The DISCOMs ask for the supply of peak power for 11 hours anytime during the 24 hours of the day.”

Recently, Mercom reported that this SECI tender was oversubscribed by 420 MW. Greenko had bid for 900 MW, ReNew Power bid for 600 MW, and HES Infrastructure bid for 120 MW capacity. The total capacity that was bid for totaled to 1,620 MW while the tendered capacity was 1,200 MW.

According to Mercom’s India Solar Project Tracker, SECI has tendered 12.2 GW under the ISTS program (Tranche I to VIII) and has auctioned 7.64 GW under ISTS Tranche I to VII.

Image credit: ABB