BSES Delhi Signs Power Sale Agreements with SECI for 510 MW of Solar and Hybrid Power
Solar power will be available at ₹2.44 (~$0.032)/kWh and hybrid power at ₹2.48 (~$0.033)/kWh
July 21, 2021
The BSES Delhi distribution companies (DISCOMs) have inked power sale agreements for 25 years with Solar Energy Corporation of India (SECI) to procure 510 MW of solar and hybrid power. Of the total capacity of 510 MW, 300 MW is solar power and 210 MW is wind-solar hybrid power. A move that will help provide economical, clean electricity to Delhi.
Announcing the agreement, a BSES DISCOMs Spokesperson said, “At Reliance Infrastructure led BSES, we value the importance of sustainable growth and the role of renewable energy in it. We have been procuring renewable energy from all available renewable sources at economical rates, ensuring minimal burden on the consumers. These agreements are yet another proof of our efforts in this direction.
The solar and hybrid power will be available to BSES DISCOMs 18 months after signing the agreement at ₹2.44 (~$0.032)/kWh for solar and ₹2.48 (~$0.033)/kWh for hybrid power including SECI’s trading margin of ₹0.07 (~$0.0009)/kWh.
SECI’s auction for 2 GW of the interstate transmission system (ISTS) connected solar projects (Tranche IX) had resulted in record-low bids ranging ₹2.36 (~$0.0313)/kWh to ₹2.38 (~$0.0316)/kWh. The auction for 1.2 GW of ISTS-connected wind-solar hybrid power projects under Tranche III had discovered winning tariffs ranging ₹2.41 (0.0326)/kWh to ₹2.42 (~$0.0327)/kWh.
The judicious mix of wind and solar power would effectively meet Delhi’s power demand, which experiences peak demand twice in 24 hours. BSES DISCOMs expect to use solar power to meet the day peak, while the wind power sourced from the coastal areas is expected to meet the peak demand at night. The supply of bundled solar and wind power is expected to reduce scheduling power variations compared to a contract for pure wind power. Moreover, this agreement will help BSES DISCOMs fulfill their Renewable Purchase Obligations (RPO).
Of the 510 MW capacity, BSES Rajdhani will be signing the agreement to procure 210 MW of solar 110 MW of hybrid power while BSES Yamuna will be procuring 90 MW of solar and 100 MW of hybrid power.
Earlier, Mercom had reported on how the backlog of unsigned power sale agreements (PSAs) was threatening to slow down growth in the solar sector. As of February 2021, PSAs for about 19 GW of solar power projects are yet to be signed by SECI.