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JSW Renew Energy Five Limited, a special purpose vehicle (SPV) of JSW Energy, has won Solar Energy Corporation of India’s (SECI) auction to set up pilot projects of 500 MW/1000 MWh standalone battery energy storage systems (BESS) under a build, own, operate, and transfer (BOOT) model.
JSW Renew Energy Five won the entire capacity by quoting ₹1.08 million (~$13,566)/ MW/ month.
The difference between the lowest and the highest quoted tariffs was more than 100% reflecting a wide range of assumptions, with the highest tariff quoted at ₹2.29 million (~$28,672)/ MW/ month.
The other companies participating in the auction were Acme Barmer Solar, Hartree Partners Singapore, Eden Renewable Vavin, Sterlite Power Transmission, NTPC Renewable Energy, ReNew Solar Power, and Azure Power Sixty Three.
SECI’s obligation will be for the offtake of 60% of the contracted capacity. The developer will manage the remaining 40% capacity.
In April this year, SECI issued a request for selection (RfS) to set up pilot projects of 500 MW/1000MWh standalone BESS under a build, own, operate, and transfer (BOOT) model.
SECI had specified that the projects must be commissioned within 18 months from signing the battery energy storage purchase agreement (BESPA).
Under the terms of the RfS, the total capacity of 500 MW/1,000 MWh must be set up at a single location, with two projects each of 500 MWh, i.e., 250 MW x 500 MWh capacity at the identified location. The projects will be located near Fatehgarh-III substations connected to Rajasthan’s interstate transmission system (ISTS) network. They must be interconnected to the 400/220 kV Fatehgarh-III ISTS Substation.
Last October, the Government of India gave the go-ahead for inviting an expression of interest (EoI) to install the 1 GWh BESS as a pilot project.
SECI’s tender for BESS is expected to set the stage for such future bids in the Indian renewable sector.
The MoP, in its recently issued Renewable Power Purchase Obligations, included Energy storage obligations setting precedence for driving battery energy storage system installations in the country.
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