CESC Limited announced the issuance of four Letters of Award for power procurement from newly established Grid Connected Wind-Solar Hybrid Power Projects. The awards were made pursuant to a competitive bidding process initiated under the Ministry of Power guidelines. The successful bidders include Purvah Green Power, Vismaya Renewables, Hexa Climate Solutions, and Sprng Energy Private Limited, covering capacities ranging from 100 MW to 300 MW, with tariffs finalized for long-term power purchase agreements.
Granting of Power Project Awards
CESC Limited has formally issued four (4) Letters of Awards to various entities. This action follows a competitive selection process initiated by CESC for the procurement of power from renewable energy sources. Specifically, the awards relate to projects based on the Ministry of Power’s “Guidelines for tariff Based Competitive Bidding Process for procurement of Power from Grid Connected Wind Solar Hybrid Power Projects”, dated August 21, 2023.
Details of Awarded Entities and Capacity
The Letters of Award have been granted for the setting up of Wind-Solar Hybrid Power Projects. The primary details of the contracts awarded are summarized below:
- Purvah Green Power Private Limited (Purvah): Awarded a contract for the Supply of 300 MW Wind-Solar Hybrid Power on a long-term basis.
- Vismaya Renewables India Project Private Limited: Awarded a contract for the Supply of 100 MW Wind-Solar Hybrid Power.
- Hexa Climate Solutions Private Limited: Awarded a contract for the Supply of 100 MW Wind-Solar Hybrid Power.
- Sprng Energy Private Limited: Awarded a contract for the Supply of 100 MW Wind-Solar Hybrid Power.
Contractual Terms
All four Power Purchase Agreements (PPAs) are structured for a long-term tenure, stipulating that the agreement will remain in force for a period of 25 years from the date of signing. The awarded tariffs vary slightly across the entities:
- Purvah Green Power: Rs. 3.75 / kWh
- Vismaya Renewables: Rs. 3.74 / kWh
- Hexa Climate Solutions: Rs. 3.75 / kWh
- Sprng Energy: Rs. 3.75 / kWh
Related Party Disclosure
Regarding potential related party transactions, CESC confirmed that for the award to Purvah Green Power Private Limited, Purvah is a subsidiary of the Company. However, CESC stated that this transaction falls within the scope of the competitive bidding process for a 300 MW Wind-Solar Hybrid Project. Therefore, the transaction is being conducted on an “arm’s length basis” and is in the ordinary course of business.
Source: BSE
