SECI Awards Contracts for 1,200 MW Solar Power Projects with Energy Storage Systems
In a significant development for India’s renewable energy sector, the Solar Energy Corporation of India (SECI) has recently awarded contracts to several major players in the industry. These contracts are intended to set up 1,200 MW of solar power projects accompanied by 600 MW/1,200 MWh of energy storage systems (ESS). This move is aimed at bolstering India’s commitment to clean energy and enhancing grid stability.
Prominent Industry Players Secure Contracts
The auction, known as SECI’s Tranche XV, attracted participation from notable industry names including Pace Digitek, Hero Solar Energy, ACME Solar Holdings, and JSW Neo Energy. Following a highly competitive bidding process, these companies emerged as the winners of this venture.
Pace Digitek secured the contract for a 100 MW solar project at a tariff of ?3.41 ($0.0408) per kWh. Hero Solar Energy and ACME Solar Holdings, on the other hand, successfully obtained contracts for 250 MW and 350 MW, respectively, at a slightly higher tariff of ?3.42 ($0.0410) per kWh. JSW Neo Energy, a subsidiary of JSW Energy, secured a significant portion of their quoted capacity by winning a contract for 500 MW, also at a tariff of ?3.42 ($0.0410) per kWh.
Timelines and Responsibilities for the Winners
As per the terms of the agreements, the successful bidders have been entrusted with the responsibility of setting up the solar power projects connected to the Interstate Transmission System (ISTS) and incorporating the required energy storage systems. They must complete the necessary transmission network and initiate work within 24 months of the effective Power Purchase Agreement (PPA) signing date. Furthermore, the companies are obligated to obtain all requisite approvals, permits, and clearances for the projects and the associated infrastructure. This signifies not only a significant opportunity for the winning firms but also places upon them the responsibility to ensure smooth project execution.
Maintaining High Capacity Utilization Factor (CUF)
To ensure optimal utilization, the projects must maintain a minimum annual Capacity Utilization Factor (CUF) of 17% during the first ten years of operation. This represents an important performance indicator for the solar power projects with energy storage systems. While a permissible deviation of +10% and -15% with respect to the declared value is permitted, complying with the defined range will be crucial for the successful implementation and long-term viability of the projects.
Promoting India’s Renewable Energy Transition
This landmark auction highlights India’s continuing commitment to expedite its transition to renewable energy sources and integrate energy storage technologies for improved grid stability and reliability. By awarding these contracts, India is taking a considerable leap forward in its ambitious goal of achieving 500 GW of non-fossil fuel-based energy capacity by 2030. The winning companies now have a unique opportunity to contribute towards reducing carbon emissions and setting an example for the rest of the industry to follow.
It is no doubt that this progressive move from SECI signifies the government’s determination to diversify the energy mix in India, reduce its dependence on fossil fuels, and combat climate change. As the winning bidders commence work on these projects, it is an exciting time for the Indian renewable energy sector and a positive step towards a cleaner and greener future for the nation.
