ReNew Power to devote $1.2Bn for India’s 1st RTC clean energy project

ReNew Power to devote $1.2Bn for India’s 1st RTC clean energy project

ReNew Power, one of India’s largest renewable energy company by operational capacity, is all set to invest over $1.2 billion in establishing a 1.3 GW hybrid RE (renewable energy) project that will provide round the clock (RTC) clean energy supply in the country.

As per reports, ReNew would build the whole project capacity in three states, namely Karnataka, Maharashtra, and Rajasthan. The hybrid capacity will include 0.9 GW of wind power, 0.4 GW of solar power, and comparable battery storage.

The project was won by ReNew Power in a tender issued by SECI (Solar Energy Corporation of India) in May 2020 at a proposed tariff rate of Rs 2.9 per unit.

The company anticipates that the project’s plant load factor (PLF) or operating ratio will be about 80%. It claims that despite being a renewable energy project, the project would run at an average annual 80% PLF and a minimum capacity utilization factor of 70% monthly.

The power generated by this hybrid plant will most likely be supplied to states in the north and east. Although, SECI officials did not confirm the states.

According to industry estimates, average rate for the project will be around Rs 3.5-3.6 per unit over its lifetime. Last year, however, Sumant Sinha, CEO of ReNew Power, assured that the rate would be lower. He had mentioned that the number (average tariff) is less than Rs 3.6/unit. However, they do have to consider some issues that need to be taken care of to create that type of firmness of power, he had remarked.

Analysis firm, Prayas Energy Group says that a minimum 80% annual CUF (capacity utilization factor) requirement along with penalties for non-compliance, the proposed Rs 2.9 per unit is an appealing price for procurers.

Sources site that ReNew Power has received the necessary approvals to link project locations to the grid and has secured connectivity through the interstate transmission system.

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