SECI, Reliance Power Enter into 25-Year Power Purchase Deal
The public sector company Solar Energy Corporation of India (SECI) and a Reliance Power business run by Anil Ambani have inked a 25-year power purchase deal for the generation of solar energy supported by battery storage.
Reliance NU Reliance Power's fully owned subsidiary Suntech is working on the biggest single-site integrated solar and battery energy storage system (BESS) project in Asia.
According to the firm, a 465 MW/1,860 megawatt-hour (MWh) BESS would be connected to the 930 MW solar power capacity at a set rate of Rs.3.53 per kilowatt-hour.
According to the firm, this deal is a huge step in India's shift to sustainable energy and one of the biggest long-term power offtake agreements the country has ever seen.
The project, which might cost up to Rs.10,000 crore in capital, is anticipated to be put into service within the next 24 months.
To match the contracted delivery, more than 1,700 MWp of solar generation will be deployed, demonstrating the scope of the energy change that Reliance Power is observed to be aiming for.
After NU Suntech obtained the largest allocation out of five bidders in SECI's Tranche XVII auction in December 2024, the contract was finalized. A competitive bidding process based on tariffs was used to award the allotment.
Reliance NU Suntech provided a Rs.378 crore performance bank guarantee to close the deal. From the reverse auction to the signing of the contract, the entire process took less than five months, which the company claimed demonstrated its operational speed and project execution prowess.
Beyond its 5,305 MW existing portfolio, which includes the 3,960 MW coal-based Sasan Power plant, Reliance Power hopes to further establish itself in India's clean energy industry with this project.
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“This landmark agreement represents a significant step in Reliance Power’s long-term strategy to lead India’s transition to sustainable, low-cost energy solutions,” the company said.