24x7 power: Nasdaq-listed ReNew set for a round-the-clock start

Nasdaq-listed ReNew is in the process of commissioning its peak power and round-the-clock (RTC) projects, aimed at providing 24x7 renewable energy, according to a top executive. In contrast to pureplay solar or wind projects, the Sumant Sinha-led company is planning to start commercial production of these projects by combining wind, solar, and battery storage. While the peak power project will begin production this quarter, the RTC project may start by December. 

“We won India’s first hybrid bid (with battery energy storage systems) in 2020, and are now starting commercial production from the project, which will provide 24x7 assured and firm supply of electricity from renewable energy. Almost 99 per cent of the project has been commissioned, with the remaining 1 per cent expected to be completed by next month,” chief executive officer of ReNew, Sumant Sinha, told Business Standard during a recent interaction in New Delhi. 

With a total combined cost of $1.8 billion for these projects in five sites across three states — Karnataka, Maharashtra and Rajasthan — ReNew will make a substantial contribution to the national mission of reaching 500 Gw of RE capacity by 2030, Sinha said. 

The last leg of the peak power project’s commissioning, set up in the Koppal district of Karnataka, will include the installation of a wind turbine. This project was developed in partnership with the Solar Energy Corporation of India (SECI). 

The peak power project utilises advanced energy storage systems up to 150 MWh alongside solar of 81 Mw and wind of 322 Mw power generation, ensuring that peak electricity can be supplied to Haryana and Goa even when renewable sources are not producing at their highest capacity. 

A peak power project refers to the development and implementation of power generation and energy storage solutions designed to meet peak demand on an electricity grid. These projects typically involve technologies like peaking power plants (often gas turbines or hydroelectric), battery energy storage systems (BESS), and pumped storage hydroelectric facilities. 

The renewable major, which is reportedly in the midst of a delisting exercise, had won a bid to supply round the clock power in 2020 through an auction conducted by SECI. After signing the power purchase agreement with SECI in 2021, the company had stated it would invest $1.2 billion to supply round the clock 400 megawatt power. 

Peak power and RTC power projects are crucial for India’s energy transition because they ensure a consistent and reliable power supply, addressing the intermittency of solar and wind power, analysts pointed out. The hybrid approach enables the project to provide a stable and reliable power supply, even during early morning, evening, and night hours, when renewable generation typically drops. 

In the case of RTC, ReNew will have 900 Mw of wind projects in Gadag and Hubli (Karnataka) and in Beed district (Maharashtra), and 400 Mw of solar plus 100 MWh BESS in Fatehgarh, Barmer (Rajasthan). It will supply electricity to these three states for household consumption as well as to the Indian railways across two additional states. 

Sinha said that the electricity units that ReNew generates through the RTC project will be affordable for some 1.1 million households. Taking an average family size of five, the RTC project will provide electricity to approximately 5.5 million people. 

The project will be designed to operate at an 80 per cent average annual plant load factor (PLF). In comparison, the PLF of a typical wind or solar plant is in the range of 25-30 per cent. The PLF for RTC power is comparable to a thermal power plant. 

“In 2015-16, ReNew was a 1 Gw company. Now we are 11.5 Gw of operational assets up and running. The peak power and RTC projects will again add to our operational assets,” Sinha said. This quarter, the company is commissioning a 500 Mw wind project as well. '”So that will take our wind capacity from around 4.7 to 5.3 Gw, which is by far the highest in the sector.” 

ReNew’s total gross capacity stands at 18.5 Gw, and the company has won bids of around 7Gw, taking the total capacity to 25Gw.