The independent power producer beat three other developers — Greenko, HES Infra, and Ayana Renewable Power — to win the country’s first auction to provide ‘round-the-clock’ clean power.
It is required to supply power from a 400MW portfolio of wind, solar PV, or hybrid projects, paired with storage to ensure a steady supply of power to utilities New Delhi Municipal Corporation (NDMC) and Dadra & Nagar Haveli.
ReNew Power will receive a tariff of INR 2,900/MWh in the first year of production, with this payment rising by 3% each year, until the 15th year of a 25-year PPA with the utilities.
The auction regulator, the Solar Energy Corporation of India (SECI), said this means the developer will receive an average tariff of INR 3,590/MWh ($47.87/MWh) for the output over the 25-year term.
At this price, distribution companies would be better meeting their energy demand with renewable sources than "conventional sources of generation", it added.
ReNew Power must maintain an annual capacity factor of 80%, and monthly capacity factor of 70%. If it fails to do so, the tariff will not be escalated, until the requirements are met over the course of a year, the regulator stipulated.
SECI launched the tender — the first of its kind in India — in October 2019.