AGEL gets LOA for 600 MW hybrid project: Adani Green Energy Limited (AGEL) has secured the letter of award (LOA) for a 600 MW wind-solar hybrid power project from the Solar Energy Corporation of India (SECI) for its wholly-owned subsidiary Adani Renewable Energy Holding Eight Limited (AREHEightL). This capacity is part of SECI's 1.2 GW interstate transmission system (ISTS)-connected wind-solar hybrid power project that it tendered. AREHEightL will supply power from the project for a fixed tariff of INR 2.41 per kWh for a period of 25 years. The company is expected to commission the project in 18 months from the effective date of the power purchase agreement (PPA). AGEL says this project takes the company's total renewable energy project capacity to 14.79 GW of which 2.95 GW is operational while the remaining 11.84 GW is under implementation.
Inadequate response for 4 GW manufacturing linked solar plant capacity: SECI has informed Azure Power that 'so far there has not been adequate response from the state electricity distribution companies for SECI to be able to sign the power sale agreements (PSA) at this stage' with regard to the 4 GW manufacturing linked tender for which Azure Power has a LOA (see 2 GW Greenshoe Option LOA For Azure Power). Till the PSA's are not signed, SECI will not be able to sign PPAs for this capacity. However, Azure Power added that capital costs, interest rates and foreign exchange rates have improved since it won the 4 GW auction a year ago which have resulted in lower tariffs in other recent SECI auctions. "We expect these savings likely will be passed on to state electricity distribution companies (DISCOMS). We expect a tariff markdown from the price discovered in the auction, which will facilitate signing of PSAs. We will continue our discussions with SECI towards signing PPAs in respect of the 4GW tender and expect the PPAs to be signed in tranches over a period of time. We will continue our policy to only take on contracts that create shareholder value and earn returns that are above our cost of capital," stated the management.
According to a report by The Financial Express, a whopping 18 GW of under construction solar project capacity in India currently has no takers as state-run discoms develop 'cold feet' on buying power from these projects 'at tariffs discovered under auctions'. This is majorly due to comparatively higher tariffs discovered under recent auctions compared to the capacity already auctioned. The lowest tariff for solar PV capacity achieved in India to date is INR 1.99 per kWh (see Historic Low For Indian Solar Tariffs @INR 1.99/kWh). Currently there is 6 GW solar PV capacity that SECI has been unable to find buyers for out of 13,816 MW under construction, the report further adds.
Solar & storage tender for Leh: SECI has launched a tender seeking bids for a 20 MW AC/50 MW DC solar PV plant with 20 MW/50 MWh battery energy storage system (BESS) to be set up at Phyang in Leh located in the Union Territory of Ladakh. Interested EPC companies will be expected to design, construct and commission the project and also provide operation and maintenance for 10 years. SECI will accept bids latest till February 10, 2021 as per the announcement. In February 2020, SECI issued a request for selection (RFS) round for 14 MW solar PV & 42 MWh energy storage capacity to be developed in Leh and Kargil (see SECI Launches 14 MW PV/42 MWh Storage Tender).
100 MW solar tender in Manipur: The Manipur Renewable Energy Development Agency (MANIREDA) has invited bids from interested solar power developers to set up a 100 MW grid connected solar PV power project at Jiribam in the state. Winners will get to sign a 25-year PPA with the Manipur State Power Distribution Company Limited (MSPDCL) with tariffs capped at INR 3.00 per kWh. It will be developed on build-own-operate (BOO) basis. Last date to submit bids is January 15, 2021, according to tender documents.
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