Hero, JSW, Pace, ACME to Develop 1,200 MW of Solar Power Projects
Hero Solar Energy (Hero Future Energies), JSW Neo Energy (JSW Energy), Pace Digitek, and ACME Solar Holdings have been allotted a total of 1,200 MW of solar projects by Solar Energy Corporation of India (SECI).
As per SECI’s Request for Selection (RfS) dated 16th March 2024, these projects are to be developed with mandatory Energy Storage Systems (ESS).
JSW Neo Awarded Largest Portion at SECI’s Auction
SECI through the way of Tariff-Based Competitive Bidding (TBCB) and bucket-filling method*, awarded the biggest chunk of the auctioned solar capacity, that is, 500 MW to JSW Neo at Rs. 3.42/KWh. ACME Solar was second in terms of capacity alloted, securing 350 MW of the total auctioned capacity at a tariff of Rs. 3.42/KWh. Hero Solar won the bid at the same tariff of Rs. 3.42/KWh for 250 MW of the total capacity. Pace Digitek was awarded its entire quoted capacity, which was the smallest share of all, that is 100 MW, even though its bid was the lowest at Rs. 3.41/KWh.
*Bucket-filling method is an allocation method in which the lowest bidder (L1) gets its entire quoted capacity. Thereafter, the next higher bidder (L2) is awarded its quoted capacity from the remainder, and this process continues till all of the capacity offered at the auction is exhausted.
Winners to setup Energy Storage System connected with ISTS
Apart from the solar power plants, each winner must install at least 0.5MW of ESS for every MW of power, in a way that it should be connected to the ISTS / Intra-State Transmission System (InSTS). According to SECI’s RfS, the ESS should be 600MW/1200MW in capacity.
SECI has floated the tender on Build-Own-Operate (BOO) basis and will enter into a power purchase agreement (PPA) with the four awardees for a period of 25 years to purchase solar power. The awardees must also commission the plants within 24 months of signing the PPA. SECI also mentioned that the plants can be anywhere in India.
India Targets 50% RE capacity by 2030 with 4% ESS
India has a target to achieve 50% of its total installed power generation capacity from renewable energy (RE) resources by 2030, while also pledging to reduce carbon emissions by 45% by 2030, taking 2005 as the base year.
Ministry of Power has laid out a roadmap for Energy Storage Obligations (ESO), where discoms must ensure that sufficient storage capacity is available. As per the trajectory released, ESO will increase from 1% in FY2023-2024 to 4% by FY 2029-2030, increasing at a rate of 0.5% annually. The obligation will be treated as complete when at least 85% of the stored energy annually is form RE means.
About SECI:- SECI is under Ministry of New and Renewable Energy (MNRE), to support the implementation of National Solar Mission and its objectives. Currently, it is the only Central Public Sector Undertaking dedicated to the renewable energy sector.
