Tata Power's 600 MW Hybrid Tender Work A Step Closer To Start With Grant OF LOA

TP Saurya Limited (TPSL), a wholly owned subsidiary of Tata Power, received the 'Letter of Award' (LoA) from Solar Energy Corporation of India (SECI) for setting up a 600 MW hybrid (wind and solar) power project in Karnataka. The letter was awarded through tariff-based competitive bidding followed by an e-Reverse auction. The project will be commissioned within 24 months from the PPA execution date. TP Saurya had bid at Rs 2.53/unit to win the largest component of the 1200 MW tender back in May, with NTPC Renewable (450 MW), AMP Energy (120 MW) and SJVN (30 MW) willing the remaining quantities bid out. The price cut off for the tender had been set at Rs 2.60/unit.

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The tender had been the largest Hybrid tender in the year so far from SECI. Going ahead too, hybrid tenders are expected to increase their share considerably.

Speaking on the project win, Dr. Praveer Sinha, CEO & MD Tata Power, said "We are enthused with the win of 600MW hybrid project for SECI as it reaffirms Tata Power's commitment to building a sustainable ecosystem for transitioning towards a greener future. Renewable hybrid projects are a game changer in India as they can generate round-the-clock power with high reliability levels to help meet country's decarbonisation goals."

With this win, the total renewables capacity of Tata Power reaches 5,524 MW, with an installed capacity of 3,634 MW and 1,890 MW under various stages of implementation.

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The winning bid price is considered a very attractive price for the tender, considering the price volatility seen in the past few months. For Tata Power, the LOA needs to be followed up by the PPA now to go full steam ahead on this large project. Considering the price on offer for potential buyers of the power, that shouldn't take too long anymore.