Gujarat-based power company Torrent Power has won the auction for the purchase of 300 MW of power from wind-solar hybrid energy projects, with a greenshoe option of up to 150 MW from its own distribution unit by quoting ₹3.65 (~$0.044)/kWh.

Torrent Power must commission the projects within 24 months of signing the power purchase agreement (PPA).

The tender for 300 MW of power supply, with a greenshoe option of 150 MW, was announced in January this year by the company’s subsidiary Torrent Power Distribution. The tender mandated that the chosen projects incorporate a 2:1 ratio of wind to solar technologies (66.67% wind and the remaining solar).

As a minimum of 50% annual capacity utilization factor (CUF) must be maintained throughout the PPA tenure, Torrent Power plans to install an overall 725 MW of combined wind and solar capacity, as opposed to 150 MW contracted capacity.

This translates to 480 MW of planned installed capacity for the 300 MW project and 245 MW for the 150 MW greenshoe project.

The total project cost is ₹54.75 billion (~$656 million), which includes ₹36.5 billion (~$437 million) for the initial 300 MW project and ₹18.25 billion (~$219 million) for the 150 MW greenshoe project. The awards have been awarded by Torrent Power’s distribution unit on an “arm’s length basis,” according to the company’s regulatory filing with the Securities and Exchange Board of India.

In June last year, Torrent Power disclosed its plans to achieve a 5 GW renewable energy portfolio over the next three to five years through inorganic acquisitions and greenfield projects. It also announced that it had been allocated 6,000 hectares of land in Gujarat, where it plans to set up ~3 GW of renewable projects encompassing both solar and wind energy.

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