ReNew Power Private Limited has signed a Power Purchase Agreement (PPA) with the Solar Energy Corporation of India Limited (SECI) for Round-The-Clock (RTC) electricity supply which is the first of its kind in the country.
This PPA for 400 MW Round the Clock energy supply through 100% Renewable Energy is a historic step as well as a huge milestone in the renewable journey of India.
In an auction conducted by SECI in 2020, RenNew won the bid to supply Round the Clock power. The company will supply the electricity in the first year at Rs 2.90/ kWh, according to the contract. Of the 25-year contract, the tariff will increase by 3% per annum for the first 15 years and will further stabilize for the remaining 10 years.
ReNew will invest up to USD 1.2 Billion in the 400 MW RTC project. The company will create 1300 MW hybrid capacity, including 900 MWs of wind capacity and 400 MWs of solar capacity, supplemented by battery storage.
The RTC project will be designed to operate at an 80% average annual plant load factor, PLF. The company will set up this capacity across Karnataka, Maharashtra and Rajasthan through wind and solar farms. ReNew Power has approvals to connect the project sites with the grid along with connectivity through the inter-state transmission system.
Sumant Sinha, Founder, Chairman and CEO, ReNew Power said, “With the signing of this PPA, ReNew Power and the Indian renewable energy sector has taken a historic step towards addressing intermittency of renewable power generation. We are pleased to sign this agreement which allows us to provide a value-added product to the electricity grid and offers us a competitive advantage for all such future bids.”
“The government’s bold vision and ReNew’s technological ingenuity and execution prowess will ensure that this project will soon start feeding stable, clean and low-cost power into the grid. I am confident, that this is the beginning of a new era in the renewable energy sector,” he added.
J N Swain, MD SECI said, “This PPA is a significant step forward to not only meet the 175 GW renewable energy target of India but also usher in a dispatchable renewable energy regime in the electricity sector.
“This is also a momentous occasion for SECI as under this single project, 400 MW renewable energy Round- The- Clock (RTC) capacity will result in the deployment of 1,300 MW of wind and solar capacity and a large-scale battery storage system in the country.
With this project, procuring utilities would get round-the-clock electricity supply from renewables at a very affordable rate while meeting their RPO targets. Innovative projects like this will be the future of renewable energy in the country.”
ReNew Power is India’s leading renewable energy company that develops, builds, owns, and operates utility-scale wind and solar energy projects along with utility-scale firm power projects and distributed solar energy projects. SECI is a Central government-owned entity and a subsidiary of Standard & Poor’s. The corporation has an AA+ domestic debt rating by ICRA.
