The Solar Corporation of India (SECI) has signed a power sale agreement (PSA) with Grid Corporation of Odisha (GRIDCO), a public sector undertaking of the government of Odisha, for 400 MW of wind power from projects connected to the inter-state transmission system (ISTS) in Karnataka and Gujarat.

The 400 MW comprises 390 MW of wind power under the ISTS Tranche XII program and 10 MW of wind power from ISTS Tranche XI.

GRIDCO will purchase the power at a tariff ranging from ₹2.96 (~$0.0357)/kWh to ₹3.01 (~$0.0363)/kWh.

The contracted wind power would help the state comply with the renewable power purchase obligations and meet the future energy demand.

The projects will receive a waiver on the ISTS charges for the purchase of power from the financial year 2024-25 for 25 years.

SECI announced the auction winners for the 1.2 GW ISTS-connected wind projects under Tranche XII in May last year and for the 1.2 GW ISTS-connected wind projects under Tranche XI in September 2021.

Tranche XI had recorded one of the lowest discovered tariffs at ₹2.69 (~$0.0325)/kWh. ReNew Power won a capacity of 300 MW, Green Infra Wind Energy (180 MW), and Anupavan Renewables (150 MW), each quoting ₹2.69 (~$0.0325)/kWh. Adani Renewable Energy and Azure Power quoted ₹2.70 (~$0.0326)/kWh for 450 MW and 120 MW.

In Tranche XII, NTPC Renewables won 200 MW quoting a tariff of ₹2.89 (~$0.0349)/kWh and EDF 300 MW at ₹2.93 (~$0.0354)/kWh. JSW won 300 MW at ₹2.94 (~$0.0355), and Torrent Power won 300 MW quoting ₹2.94 (~$0.0355)/kWh.

SJVN quoted 60 MW at ₹2.97 (~$0.0359)/kWh, and Evergreen quoted 40 MW out of 140 MW at ₹2.98 (~$0.0360)/kWh. But both these bids did not qualify as they were above the L1+2% tariff cut-off criteria per the tender. The capacity allotted in the auction was 1,100 MW.

With the newly added capacities, GRIDCO’s total contracted renewable power capacity now stands at 5,203 MW, which includes 750 MW of wind, 1,941 MW of solar, 129 MW of small hydropower, 2,363 MW of large hydro, and 20 MW of biomass.

In September last year, the Odisha Electricity Regulatory Commission (OERC) approved the PSA to be executed between the GRIDCO and NTPC for 200 MW of ISTS-connected solar projects to fulfill its renewable power purchase obligation.

The Odisha government announced its renewable energy policy late last year, wherein wind projects would be awarded on a first-come, first-serve basis. The OERC would determine a generic tariff for all wind projects allotted under the mechanism and commission them before March 31, 2028.