Solairedirect Energy India (ENGIE), ReNew Solar Power, and NTPC Renewable Energy won REC Power Development and Consultancy’s (RECPDCL) auction to develop 1,250 MW inter-state transmission system (ISTS)-connected solar power projects -Tranche I.

The generation from these projects would be bundled with thermal or hydro power to maintain flexibility in generating and scheduling thermal or hydropower stations.

Solairedirect Energy India won 300 MW, and ReNew Solar Power won 400 MW by quoting ₹2.55 (~$0.0311)/ kWh. NTPC Renewable Energy, which had bid for the entire capacity, won 550 MW by quoting ₹2.56 (~$0.0312)/kWh.

 

RECPDCL floated the tender in December last year.

NTPC will enter into power purchase agreements (PPA) with the winners to purchase solar power for 25 years.

The auction winners are expected to commission the projects within 18 months from the effective date of the PPA.

The successful bidder will have to furnish ₹800,000 (~$9,767)/MW as a performance bank guarantee within seven days before signing the PPA.

The developers will also be responsible for getting ISTS connectivity for the projects.

The tender specified the annual capacity utilization factor (CUF) to not be less than 22%. The developers will be responsible for installing solar panels and associated equipment necessary to achieve the required CUF.

The developers should maintain generation to achieve annual CUF within + 10% and -15% of the declared value until the end of ten years from the commercial operation date, subject to the annual CUF remaining minimum of 19% and within +10% and -20% of the declared value of the annual CUF after that until the end of 25 years.

The developers are expected to use only commercially established and operational technologies for these projects to minimize the technology risk and achieve the projects’ timely commissioning.

According to Mercom India Research, solar tenders floated by various agencies in India rose 43% quarter-over-quarter (QoQ) to 13.8 GW in the first quarter of 2023, while solar auctions witnessed a 50% QoQ dip.

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