The Solar Energy Corporation of India (SECI) recently auctioned 1.2 GW of round-the-clock (RTC) power from interstate transmission system (ISTS)-connected renewable energy projects. The winners of the auction include Hero Solar Energy, Hexa Climate Solutions, Sembcorp Green Infra, and Jindal India Power. Hero and Hexa won 120 MW and 100 MW, respectively, at a tariff of ₹5.06 (~$0.0594)/kWh, while Sembcorp Green and Jindal India won 50 MW and 150 MW, respectively, for ₹5.07 (~$0.0595)/kWh.
The successful bidders will be responsible for setting up the transmission network, identifying land, installing and owning the projects, obtaining connectivity and approvals, and interconnecting with the ISTS network. They will also set up energy storage systems to ensure the supply of RTC power. The minimum voltage level for interconnection at the ISTS will be 220 kV. The companies will be required to ensure a minimum demand fulfilment ratio (DFR) of 80% annually, 75% monthly, and 90% during peak hours.
In case of shortfalls in DFR requirements, the companies will be penalized 1.5 times the cost of the shortfall in energy terms for monthly and annual shortfalls, and 2.5 times for peak hour shortfalls. The power supply from the project is expected to start 24 months from signing the power purchase agreement (PPA), and the company can split the cumulative capacity into multiple projects within the deadline.
The tender specified that only type-certified wind turbine models listed in the Revised List of Models and Manufacturers issued by the Ministry of New and Renewable Energy can be used in the projects. Only commercially established and operational technologies can be deployed to minimize technology risk. This auction is part of India’s efforts to increase its renewable energy capacity and reduce its dependence on fossil fuels.
The winning companies will have the flexibility to supply power over the contracted capacity at any time block to any third party or power exchange, and if the buying entity purchases such power, it will be purchased at the PPA tariff. This will help to optimize the projects’ operation and ensure that the power generated is utilized efficiently. Overall, the auction is a significant step towards promoting renewable energy in India and reducing the country’s carbon footprint.