![SECI Concludes World’s Largest Renewable-cum-Storage based Firm-Supply Tender at Rs. 4.04/kWh (Cents 5.61/kWh) Weighted Average Tariff, Fixed for 25 Years](https://www.eqmagpro.com/wp-content/uploads/2020/01/SECI-2.png)
SECI Concludes World’s Largest Renewable-cum-Storage based Firm-Supply Tender at Rs. 4.04/kWh (Cents 5.61/kWh) Weighted Average Tariff, Fixed for 25 Years
Text from NSEFI
Pumped Hydro and Battery projects, coupled with renewables, offer lowest ever peak tariff globally
Solar Energy Corporation of India (SECI), a Govt. of India agency for promoting renewable and storage in India, today concluded the reverse auction for the world’s largest renewable-cum-energy storage power purchase tender. 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 5.30PM-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.
The renewable power from these projects will be firm, predictable, and will meet the peak requirements of the DISCOMs, which otherwise have to depend on spot markets without price, supply or network assurance, and are prepaid.
The tender was oversubscribed, with bids received for 1620 MW against the 1200 MW sought by SECI. Greenko emerged the lowest bidder in the online reverse auction conducted by SECI, at highly attractive weighted average tariff of Rs. 4.04/kWh (Cents 5.61/kWh), for 900 MW contracted capacity, from its pump storage projects, with quoted peak tariff of Rs. 6.12/kWh (Cents 8.50/kWh). Renew Power, the second lowest bidder, won 300 MW contracted capacity at weighted average Rs 4.30/kWh (Cents 5.97/kWh), with lowest ever renewable + battery quoted peak tariff of Rs. 6.85/kWh (Cents 9.51/kWh). For the renewable energy supplied during off-peak hours, pre-specified tariff of Rs. 2.88/kWh (Cents 4.00/kWh) will be paid by SECI.
This power will help the DISCOMs of India meet their RPPO (renewable power purchase obligations) at a 25-year fixed price, with no price uncertainty. The Govt. of India has mandated all DISCOMs of 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 this, thermal power in India has become priced out. The most recent thermal power tenders in the country have resulted in levelised tariffs in the range of Rs. 5.00- 7.00/kWh @ 85% annual PLF (Cents 6.94-9.72/kWh). The peak tariff under this SECI tender is highly competitive vis-à-vis the recent peak tariffs in international markets like USA (Rs. 8-9/kWh, or Cents 11.11-12.50/kWh)”, said Mr. Pranav R Mehta, Chairman of the National Solar Energy Federation of India (NSEFI). 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 25 years.
With the peak time-of-day (TOD) tariffs becoming more and more pronounced in India, these discovered tariffs will be value accretive for DISCOMs, and are already much lower than the ever-increasing commercial & industrial consumer tariffs in India.
With this, India has taken a giant step towards achieving its ambition of creating gigawatt-scale renewable energy and storage market for achieving firm, clean, and affordable power.
Source : NSEFI