ReNew Power plans to invest $1.2 billion to supply round-the-clock 400 megawatt (MW), and has signed the long pending power purchase agreement (PPA) with state-run Solar Energy Corporation of India (Seci) for the same.
“ReNew had won the bid to supply Round-The-Clock power in 2020 through an auction conducted by SECI. As per the contract, ReNew Power will supply electricity in the first year at ₹2.90/kWh (about 3.9 cents). This tariff will increase by 3% annually for the first 15 years, after which it will stabilize for the remaining 10 years of the 25-year contract,” ReNew Power said in a statement on Saturday.
This electricity is to be supplied to New Delhi Municipal Corporation (NDMC), Daman and Diu and Dadra and Nagar Haveli and will require 900 MW of wind capacity, 400 MW of solar capacity along with a battery storage. This wind and solar capacity will be set up in Karnataka, Maharashtra, and Rajasthan.
“The project will be designed to operate at an 80% average annual plant load factor (PLF) and will have a minimum capacity utilization factor of 70% a month, despite being a renewable energy project,” the statement said.
This comes against the backdrop of ReNew Power’s impending merger with Nasdaq-listed special purpose acquisition company (SPAC) RMG Acquisition Corp.