CESC Subsidiary Secures 300 MW Solar Project with Energy Storage from SECI

CESC Limited announced that its wholly-owned subsidiary, Purvah Green Power Private Limited, has been awarded a Letter of Award (LoA) by the Solar Energy Corporation of India Limited (SECI). This LoA is for the development of a 300 MW solar power project which includes an integrated energy storage system. Purvah Green Power Private Limited has formally accepted the LoA, which was issued by SECI on October 27.

The selection was made under SECI's Request for Selection for setting up 2,000 MW of inter-state transmission system (ISTS)-connected solar PV power projects, coupled with 1,000 MW/4,000 MWh of energy storage systems across India. This initiative aligns with the 'Guidelines for Tariff-Based Competitive Bidding Process for Procurement of Firm and Dispatchable Power from Grid-Connected Renewable Energy Power Projects with Energy Storage Systems,' issued by the Ministry of Power in June 2023.

The project has been secured for a period of 25 years, based on a tariff of Rs 2.86 per kWh. CESC has clarified that this project is domestic in nature and falls outside the scope of related-party transactions.

Impact This development is highly positive for CESC Limited as it expands its presence in the rapidly growing renewable energy sector, particularly with the inclusion of energy storage. It signifies a strategic move towards providing reliable, dispatchable renewable power, which is critical for India's energy transition. The company's ability to secure such a large project under a competitive tariff indicates strong operational and bidding capabilities. Impact Rating: 8/10.

Definitions: Letter of Award (LoA): A formal offer from a client to a supplier or contractor, indicating that the client has accepted the supplier's bid and intends to enter into a contract. Solar Energy Corporation of India Limited (SECI): A Public Sector Undertaking (PSU) under the Ministry of New and Renewable Energy, Government of India, responsible for promoting solar energy and related activities. Inter-State Transmission System (ISTS): The network of high-voltage power lines that transmit electricity between different states in India. Solar PV Power Projects: Power generation facilities that use photovoltaic (PV) solar panels to convert sunlight directly into electricity. Energy Storage System: Technologies, such as batteries, that store energy generated at one time for use at a later time, helping to ensure a consistent power supply from intermittent sources like solar. Tariff: The price charged for the supply of electricity, typically per kilowatt-hour (kWh). Kilowatt-hour (kWh): A unit of electrical energy, representing the amount of energy consumed or produced by a 1-kilowatt device operating for one hour.