• SECI has set an annual escalation of 3 percent on the quoted tariff up to the end of the 15th year of the contract

• The project is expected to commissioned at full capacity within 24 months from the effective date of the PPA

New Delhi: ReNew Power has won the auction for 400 MW tender floated by SECI (Solar Energy Corporation of India) for renewable power on a round-the-clock (RTC) basis at a quoted tariff of Rs 2.90/kWh on Friday. Congratulating SECI for discovering the said tariff, Power Minister RK Singh said on Twitter, "Golden chapter added in Indian RE 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."

Anand Kumar, Secretary at MNRE (Ministry of New and Renewable Energy), also tweeted, "Congratulations SECI for discovering the tariff of Rs 2.90 / kWh under Round the Clock bid."

On February 28, SECI had amended the terms of the tender to change the annual tariff escalation to 3 percent from 4 percent earlier. As per the PPA (power purchase agreement), SECI has set an annual escalation of 3 percent on the quoted tariff up to the end of the 15th year of the contract. The levelized tariff would be between Rs 3.55/kWh to Rs 3.60/kWh, depending on the capacity utilization, electricity generation and other factors.

Commissioning timeline for the 400 MW project

The project is expected to commissioned at full capacity within 24 months from the effective date of the PPA, SECI said. The 400 MW tender floated by SECI was oversubscribed by 550 MW after SECI received bids for 950 MW in total. Bids were received from Greenko and ReNew Power for 400 MW, while HES Infra bid for 100 MW, followed by Ayana for 50 MW.

The backdrop

The 400 MW tender was issued by SECI in October 2019. The power generated at these projects will be supplied to NDMC (New Delhi Municipal Corporation) and Dadra and Nagar Haveli. The bidder can develop solar, wind, and hybrid projects under this tender. They can also augment the capacity with necessary energy storage systems as per the developer's requirements to meet the criteria of supply of power during the peak hours. The bidder also has the option to choose the type of storage system to be installed.