Reliance NU Suntech, a subsidiary of Reliance Power Limited, has secured a major project from the Solar Energy Corporation of India (SECI). The company received the Letter of Award for developing a 930 MW solar power project combined with a 465 MW/1,860 MWh Battery Energy Storage System (BESS). Reliance Power Ltd’s shares are trading at ₹45.15, down 3.34% today but up 88.52% year-to-date.
The solar project, paired with BESS, is set to become the second-largest deployment of grid-scale batteries at a single site in Asia, outside China. The installation will help ensure a reliable power supply during peak demand, addressing the needs of Distribution Companies (DISCOMs).
The project was awarded through an e-reverse auction conducted on December 9, 2024. Reliance NU Suntech won the largest individual allocation among five companies competing for a total quoted capacity of 2,000 MW of solar power with 1,000 MW/4,000 MWh of energy storage systems.
Under the agreement, Reliance NU Suntech will install a minimum storage capacity of 465 MW/1,860 MWh, which will be charged entirely by solar power. The energy storage system will enable a four-hour daily discharge duration, guaranteeing a consistent power supply during peak hours.
A 25-year Power Purchase Agreement (PPA) will be signed with SECI, under which the solar energy generated will be distributed to multiple DISCOMs across India. The project will operate on a build-own-operate model.
This initiative is expected to boost the integration of renewable energy into the grid by addressing the intermittency issues associated with solar power. The competitive tariff structure, combined with assured peak-hour supply, is likely to provide relief to DISCOMs that currently rely on high-cost power purchases from exchanges, often at ₹10 per unit.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.
Published on: Dec 18, 2024, 2:08 PM IST
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