Tata Power has received a Letter of Award (LoA) from the Kerala State Electricity Board (KSEB) to develop a 110 MW solar project.
The energy will be supplied to KSEB under a Power Purchase Agreement (PPA), valid for 25 years from the commercial operation date. Tata Power won the capacity in a bid announced by KSEB in September 2020.
As per a BSE filing submitted by Tata Power, the contract size is approximately ₹4.88 billion (~$66.55 million).
In November 2020, NTPC had won 90 MW of solar projects in KSEB’s reverse e-auction for 200 MW. It won the capacity for the lowest discovered tariff of ₹2.97 (~$0.04)/kWh, according to Mercom’s sources.
The remaining capacity was awarded to Tata Power, which quoted the second-lowest tariff but later matched NTPC’s price. Tata Power had bid for 200 MW but was awarded 110 MW of capacity.
The project should be commissioned within 18 months from the date of execution of the PPA.
The project is expected to generate about 274 MUs of energy per year and annually offset approximately 274 Million Kg of CO2.
With the latest addition, Tata Power’s renewable capacity will increase to 4,032 MW, out of which 2,667 MW is operational, and 1,365 MW is under implementation, including 110 MW won under this LoA.
Praveer Sinha, CEO & MD, Tata Power, said, “We are proud to announce that we have been awarded 110 MW Solar Project by KSEBL, and are thankful to the Government of Kerala and the officials at KSEBL for this opportunity. We are delighted to contribute towards the realization of our country’s commitment to clean and green energy through solar power generation.”
Tata Power had announced its earnings for the quarter ended September 30, 2020 (Q2) of the financial year 2020-2021, and posted a net profit of ₹3.71 billion (~$49.8 million), a 10% increase from ₹3.39 billion (~$45.5 million) in the same period last year.
Last year, Tata Power’s wholly-owned subsidiary, Tata Power Green Energy, received a letter of award (LoA) to develop a 225 MW hybrid renewable power project. The LoA was awarded from its Mumbai-based distribution company – Tata Power Mumbai Distribution.
Rahul is a staff reporter at Mercom India. Before entering the world of renewables, Rahul was head of the Gujarat bureau for The Quint. He has also worked for DNA Ahmedabad and Ahmedabad Mirror. Hailing from a banking and finance background, Rahul has also worked for JP Morgan Chase and State Bank of India. More articles from Rahul Nair.