ReNew Solar Power bags 400 MW renewable energy projects at Rs 2.90/unit: MNRE

ReNew Solar Power has bagged 400 MW renewable energy projects at a tariff of Rs 2.90 per unit in an auction, according to an MNRE statement.

The Solar Energy Corporation of India (SECI), a central public sector undertaking, conducted e-reverse auction for the 400 MW renewable energy projects with round-the-clock supply.

"India's renewable energy (RE) sector has witnessed history today, as the e-reverse auction (e-RA)for 400 MW RE projects with round-the-clock supply was concluded at an astounding first year tariff of Rs 2.90/kilowatt hour (kWh)," the Ministry of New and Renewable Energy (MNRE) said.

The capacity of 400 MW has been awarded to ReNew Solar Power Pvt Ltd after a closely fought auction which saw the lowest tariff drop by 69 paise over the course of almost 3 hours, it said.

"Golden chapter added in Indian Renewable Energy 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 per cent RE power, Power and New & Renewable Energy Minister R K Singh said in a tweet last evening.

The tender for 400 MW capacity had received a strong participation, with four bidders submitting their bids for a total capacity of 950 MW.

Threeout of the four bidders, namely ReNew Solar Power, Greenko Energies and HES Infra were finally shortlisted for the e-RA.

Ayana Renewable Power Pvt Ltd was the fourth bidder.

Power from this project is targeted to be sold to the NDMC and Daman & Diu and Dadra & Nagar Haveli, with each entity off taking a capacity of 200 MW.

There was no ceiling tariff for the projects and the developers are free to set up the project on a pan-India basis. The projects under this tender will be set up under the build-own-operate model.

What makes the tariff a historic one, is the fact that this tender provides for a round-the-clock energy supply from 100 per cent RE based energy generation sources, such as wind and solar PV, combined with storage.

The developer will be provided a maximum time period of 24 months from the effective date of power purchase agreement. The first year tariff shall be escalated @3 per cent on an annual basis, up to the 15th year of the 25-year term of the agreement.

As a result, the effective tariff for the said project amounts to Rs 3.59/kWh. Compared to the tariffs witnessed in conventional sources of generation, this tariff offers a much better proposition for the disocms to meet their energy demand through 100 per cent RE supply, the MNRE said.