Tata Power Renewable Energy Limited (TPREL)—a wholly-owned subsidiary of integrated power producer Tata Power—has received a Letter of Award from Gujarat Urja Vikas Nigam Limited (GUVNL) to develop a 120 MW solar project in Gujarat.
The electricity generated will be supplied to GUVNL under a power purchase agreement (PPA), valid for a period of 25 years from the scheduled commercial operation date.
TPREL won this capacity in a 500 MW GUVNL auction under Phase VIII in February that had maximum tariff payable to the developer set as Rs 2.65/unit. Under the terms of the tender, the bidders were required to choose the locations and sub-stations for their proposed solar power project from a list available on the website of Gujarat Energy Transmission Corporation Limited (GETCO).
The project is required to be commissioned within 18 months from the date of execution of the PPA.
The plant is expected to generate about 300 million units of electricity per year and will annually offset approximately 300 million Kg of CO2.
With this award, Tata Power’s renewable capacity will increase to 3,457 MW, out of which 2,634 MW (932 MW wind and 1702 MW solar) is operational and 820 MW is under implementation including 120 MW solar won from GUVNL.
The remaining 700 MW large-scale solar capacity under development by Tata Power includes 100 MW in Uttar Pradesh, 400 MW in Gujarat and 200 MW in Maharashtra.