A step-down wholly-owned subsidiary of JSW Energy Ltd has signed a power purchase agreement (PPA) with Solar Energy Corporation of India (SECI) for wind-solar hybrid capacity.
JSW Renew Energy Ltd, a wholly-owned subsidiary of JSW Future Energy Ltd, has signed a PPA with SECI for the contracted capacity of 540 mw out of the total awarded capacity of 810 mw.
This, according a JSW Energy release, is the single-largest PPA in the wind/ blended wind energy industry. This also marks JSW Energy’s foray in the wind/blended wind energy industry, the release noted. (Blended wind is also referred to as “hybrid” power, entailing a combination of solar and wind power.)
It may be recalled that in September 2020, JSW Future Energy Ltd, a wholly-owned subsidiary of JSW Energy Ltd, had received letters of award for developing 810 mw of blended wind capacity from SECI. This was in response to SECI’s invitation of bids, under the tariff-based competitive bidding route, for setting up a total 2,500 mw of ISTS-connected blended wind power projects, under Tranche IX.
It may be noted that JSW Future Energy Ltd was formerly known as JSW Solar Ltd.
SECI Tender: A Background
In August 2020, SECI had accepted bids worth 970 mw, out of the total 2,500 mw put up for award under Tranche-IX. SECI had received technically- and financially-qualified bids worth 1,210 mw – coming from JSW Future Energy (1,000 mw), Vena Energy Vidyuth (160 mw) and Inox Wind Infrastructure (50 mw). After the e-reverse auction, SECI decided to award capacity aggregating 970 mw. This was done in favour of JSW Future Energy (810 mw) and Vena Energy (160 mw). JSW quoted Rs.3.00 per kwh, while Vena Energy put in a quote of Rs.2.99 per kwh. Inox Wind Infrastructure that had quoted Rs.3.41 per kwh was not awarded any capacity under this tender.
Project Outlay
According to information available independently, the capital outlay for the entire 810-mw capacity is around Rs.4,700 crore, to be funded on a 70:30 debt-equity ratio. Project commissioning is expected within 24 months of signing of the PPA. The duration of the PPA is 25 years.
(Featured photograph for illustration only)
