Reliance Power shares in focus after arm wins 930 MW order from SECI; key details

Shares of Reliance Power Ltd are in focus on Thursday morning after Reliance NU Suntech, a subsidiary of the Anil Ambani-led company, in an e-reverse auction held on December 9, bagged a 930 MW solar energy contract -- with battery energy storage system project (BESS), from Solar Energy Corporation of India (SECI).

Reliance Power informed stock exchanges BSE and NSE that Reliance NU Suntech would also have to install a minimum storage capacity of 465 MW/1,860 MWh charged by solar power, as per the terms of the tender, 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. The company, among India’s leading power generators, 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," Reliance Power said.

Reliance Power shares are up 39.38 per cent in the past six months and 83.55 per cent year-to-date.

The Anil Ambani firm said Reliance NU Suntech’s win underlines the technological progress made in solar power with BESS in India which has made it a cost-effective alternative to renewable energy options.

"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 a period of 25 years and the solar power procured will be sold to multiple discoms in India," it said.

The Reliance Power arm would develop the project on a build-own-operate basis and would have to connect to the interstate transmission system in compliance with Central Electricity Regulatory Commission regulations for interconnection with the ISTS or InSTS, the company told stock exchanges.