Reliance Power shares boosts 5% after arm wins 930 MW Solar Project from SECI

Reliance Power Ltd’s subsidiary, Reliance NU Suntech Private Ltd (Reliance NU Suntech), has secured a 930 MW solar energy project with a battery energy storage system (BESS) in an e-reverse auction conducted by the Solar Energy Corporation of India (SECI) on December 9, 2024.

As per the terms of the tender, Reliance NU Suntech will also have to install a minimum storage capacity of 465 MW/1,860 MWh to be charged by solar power. The letter of award (LoA) is awaited from SECI. Reliance NU Suntech's successful bid for SECI’s Tranche XVII auction was won at a tariff of Rs 3.53 ($0.0416)/kWh.

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The company secured the largest individual allocation out of the five companies vying for a total quoted capacity of 2,000 MW of inter-state transmission system (ISTS)-connected solar power projects with 1,000 MW/4,000 MWh energy storage systems. The project will guarantee a peak power supply of four hours daily (or a four-hour discharge duration).

SECI will enter into a power purchase agreement (PPA) with Reliance NU Suntech for 25 years and the solar power procured will be sold to multiple discoms in India.

Reliance NU Suntech will develop the project on a build-own-operate (BOO) basis and will have to connect to the interstate transmission system in compliance with Central Electricity Regulatory Commission (CERC) regulations for interconnection with the ISTS or InSTS. Shares of Reliance Power are currently trading 4.6% higher at Rs 46.

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