ReNew and Avaada Win Government’s 500 MW Solar Auction
DVC will procure the power to bundle with thermal generation
ReNew Solar Power and Avaada Energy have won REC Power Development and Consultancy’s (RECPDCL) auction to supply 500 MW of power from interstate transmission system (ISTS)-connected solar power projects to be set up across the country.
ReNew won 200 MW by quoting ₹2.69 (~$0.03)/kWh. Avaada Energy won the rest of 300 MW by quoting ₹2.70 (~$0.03)/kWh.
The successful bidders will sign a power purchase agreement (PPA) with Damodar Valley Corporation (DVC) for a duration of 25 years.
The tender was floated in December last year.
The projects aim to combine renewable energy and storage with thermal or hydropower to ensure power generation and scheduling flexibility.
The tender specified that only commercially established and operational technologies should be utilized to minimize the risks associated with technology.
The developer is responsible for the costs and ISTS connectivity in accordance with the relevant regulations.
The solar modules utilized in the solar projects must have a warranty for peak output wattage, which must stay within 90% at the end of ten years and 80% at the end of 25 years.
Once the projects come online, the capacity utilization factor (CUF) should be at least 22% per year, as declared by the developer.
The developer must ensure that the actual CUF stays within a range of +10% to -15% of the declared value for the first ten years after the commercial operation date, provided the yearly CUF remains above 19%.
After the initial ten years, the actual CUF should stay within a range of +10% to -20% of the declared value for the remaining PPA duration of 25 years.
In another auction by REC Power Development and Consultancy (RECPDCL), Solairedirect Energy India (ENGIE), ReNew Solar Power, and NTPC Renewable Energy won to develop 1,250 MW inter-state transmission system (ISTS)-connected solar power projects -Tranche I.
Recently, REC issued green bonds worth $750 million under its $7 billion Global Medium Term Note Program. The bonds carry an interest of 5.625% and will mature on April 11, 2028. The principal and interest payments will be made in U.S. dollars.
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