CESC Awards Wind-Solar Hybrid Power Project Contract to Subsidiary Purvah Green Power

CESC Limited has announced that its subsidiary, Purvah Green Power Private Limited, has been awarded a contract to develop 150 MW of wind-solar hybrid power projects. This initiative aligns with the government’s push for renewable energy through tariff-based competitive bidding. The project also includes a Greenshoe option for an additional 150 MW capacity, effectively doubling the potential scale.

Key Details of the Project

The contract follows the Ministry of Power’s Guidelines for Tariff-Based Competitive Bidding Process for Procurement of Power issued on August 21, 2023. These guidelines were designed to promote transparency and efficiency in renewable energy procurement.

Highlights

• Project Size: 150 MW Wind-Solar Hybrid Power with an additional 150 MW under the Greenshoe option.
• Type of Connection: Inter-State Transmission System (ISTS) connected.
• Contract Duration: The power purchase agreement will last 25 years from the scheduled commencement date.
• Related Party Transaction: Purvah Green Power, being a subsidiary of CESC, qualifies as a related party. However, the contract adheres to arm’s length principles and is conducted in the ordinary course of business.

Driving Renewable Growth

This project marks a strategic move by CESC to expand its renewable energy portfolio. Wind-solar hybrid projects are expected to provide stable and reliable energy output by combining two renewable sources, reducing intermittency concerns.

Why Hybrid Projects Matter

Hybrid renewable projects address the variability of standalone solar or wind plants by balancing power generation patterns. This ensures better grid stability and higher utilisation rates.

Impact on CESC Share Price 

Despite this positive development, CESC’s share price traded 1.34% lower at 10:24 am on January 8, 2025, reflecting broader weak market sentiment.

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