ReNew Solar Power Pvt. Ltd. and Avaada Energy Pvt. Ltd. have emerged as winners in the auction for the construction of 500 MW of solar power projects, which was floated by REC Power Development and Consultancy (RECPDCL) in December 2022. The projects will be connected to the interstate transmission system (ISTS) and will include a combination of thermal or hydroelectric power with renewable energy sources and storage to preserve flexibility in generation and scheduling.
ReNew Solar Power has been awarded the full capacity quoted of 200 MW at a tariff of Rs. 2.69/kWh, while Avaada Energy Pvt. Ltd. has been awarded 300 MW out of the 500 MW it had quoted at a tariff of Rs. 2.70/kWh. Other participants in the auction included Apraava Energy Pvt. Ltd., Solalite Power Pvt. Ltd. (O2 Power), Eden Renewable Ternes Pvt. Ltd., and NTPC Renewable Energy Limited.
The selected bidders will sign a 25-year power purchase agreement (PPA) with Damodar Valley Corporation, and the project must be operational within 18 months of the PPA’s signing date. Only commercially established and functioning technologies should be employed to minimize technical risk and ensure timely commissioning of the projects. The developer will also be responsible for and pay for ISTS connectivity.
The solar modules used in the projects must have a warranty covering their peak output wattage, which should not be less than 90% after 10 years and 80% after 25 years. A claimed yearly capacity utilization factor (CUF) of less than 22% is not acceptable.
The auction results reflect the growing interest in renewable energy projects in India, and the willingness of the government to support and promote such initiatives. With these projects, India takes another step towards its goal of achieving 450 GW of renewable energy capacity by 2030.