A large vertically integrated energy utility in India has auctioned a huge solar power project.
According to media reports, Damodar Valley Corporation (DVC), a government-owned entity, has awarded rights to develop a 421 megawatt (peak) solar power project to a private company — Avaada Energy.
Avaada secured the project following a competitive auction organized by another government-owned company, REC Power Distribution Company Limited. Avaada quoted a tariff of Rs 2.70 per kilowatt-hour. The company must commission the project within 18 months of signing the power purchase agreement with DVC. It will supply power for 25 years. The project is expected to generate 750 million kilowatt-hours of electricity and offset almost 700,000 tonnes of carbon dioxide emissions every year.
DVC generates and distributes power to end consumers across multiple states. As a result, the company is bound to procure a predefined minimum percentage of power from renewable energy sources. In the last few years, the company has announced ambitious plans to increase renewable energy procurement.
In September 2020, DVC announced that all its new power generation capacity would be based on solar power. It also announced plans to set up 1,776 megawatts of floating solar power capacity at its four hydropower projects located in the states of Jharkhand and West Bengal.
In December 2021, DVC signed a memorandum of understanding with SJVN, a government-owned hydro power generating company. As per the agreement, the two companies are to collaborate to develop 2 gigawatts of floating solar power capacity at hydro power projects and reservoirs located in DVC’s control area.
DVC is believed to have 7.2 gigawatts of hydro and thermal power capacity. According to media reports, it has retired at least 840 megawatts of aging thermal power capacity in the last five years.
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