ReNew Power Bags 400 MW SECI RTC Tender, Record Tariff At INR 2.9/unit

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ReNew Power has won the auction for the 400 MW RTC tender issued by SECI on 18/10/2019. The quoted tariff is a record breaking ₹2.90/kWh, as per our industry sources.

SECI had invited proposals for setting up of ISTS-connected Renewable Power Project anywhere in India on “Build Own Operate” (B-O-O) basis for an aggregate capacity of 400 MW, on a Round-the-Clock basis.

SECI will enter into a Power Purchase Agreement (PPA) with ReNew for purchase of power for a period of 25 years based. As per the tender document the RE power project could also be augmented with necessary Energy Storage Systems as per the developer’s requirements, to meet the above criteria of supply of power during the supply hours.

The 400 MW RE RTC power will be supplied to to NDMC, New Delhi and Dadra & Nagar Haveli.

Currently, total RE capacity installed in India is over 80 GW, with wind projects constituting over 35 GW and installed solar projects capacity touched 30 GW. However,
in spite of RE power ranked second in terms of total installed capacity in India, owing to
their intermittent and infirm resource-centric nature, renewables have not been able to
replace conventional power to fulfil peak load demand of Discoms.

In India, RE capacity deployment will continue dominate the energy mix as the deployment of conventional sources are not commercially and environmentally viable options. Further, increased electrification and reduced load shedding by Discoms have resulted in a steep increase in the peak energy demand, which is currently met by the Discoms at significant higher costs.

With an increasing share of renewable energy capacity being added, utilities have demanded that RE power must become firm and flexible to become prime resource to bridge this demand-supply gap.

The short-term target is therefore, to achieve a shift in the energy mix in the country, and push for RE with storage technologies becoming one of the key resources to meet peak demand during morning and evening hours.

RE-Hybrid Projects with suitable storage capacity can meet Round-the-Clock (RTC) base load without resorting to any external balancing need and/or strategy. Also it provides generation flexibility to meet the peak loads of DISCOMs- which typically not only change with seasons but do undergo pattern shift over time.

With a large quantum of storage capability, such RE-Hybrid Projects can additionally provide flexibility to DISCOMs to requisition firm hourly energy quantum on a dynamic basis matching its evolving demand curve. Therefore, RE-Hybrid Projects with appropriate storage are the best hedge against the rapidly changing end-use power consumption pattern, to meet their growing and varying power demand sustainably without any fuel price rise risk.

As per the tender RFS, the PPA will be signed for a committed annual energy equivalent to 100% CUF of the Project, in order to ensure “Round-the-Clock” energy supply by the RPD, which shall remain unchanged after signing of PPA. Calculation of CUF will be on yearly basis from 1st April of the year to 31st March of next year. The developer shall maintain energy supply so as to achieve annual CUF not less than 80% (eighty percent) and monthly CUF not less than 70 % (seventy percent) for the Project, during the PPA duration of 25 years. The lower limit will, however, be relaxable by SECI to the extent of non-availability of grid for evacuation which is beyond the control of the HPD.

The annual CUF will be calculated every year from 1st April of the year to 31st March next year.

The utility shall use the power for fulfillment of solar and non-solar RPO in the proportion of rated capacity of solar and wind power in the project respectively. The RPDs are free to install additional wind turbines to account for auxiliary consumption in the Projects.

As per the tender, there is no minimum or maximum power demand by the buying DISCOMs. A constant power supply equal to contracted capacity as per PPA (MW), on a “roundthe-clock” basis, for the entire year, will be sought by the Buying utility. The Buying Utility shall, in turn, mandatorily off take such power as made available by the RPD.

The tender was oversubscribed 240% with bids being received from Greenko (400 MW), ReNew Power (400 MW), HES Infra (100 MW), and Ayana for 50 MW.

Earlier this year, the Ministry of New and Renewable Energy had proposed a draft policy for the supply of round-the-clock power to utilities through a mix of renewable energy and electricity generated in coal-based thermal power plants.

“The main objective of the scheme is to provide round-the-clock power to the discoms through bundling of renewable power with thermal power and to scale up renewable capacity additions. It will also facilitate fulfilment of renewable purchase obligation requirement of the obligated entities,” the ministry had stated.

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