Torrent Power Awarded 300 MW Solar PPA, Project to be Established in Gujarat

Torrent Power has been awarded a long-term PPA for 300 MW capacity of solar power generation, project to come up in Gujarat.

Torrent Power has announced that it has been awarded a long-term Power Purchase Arrangement (PPA) for 300 MW capacity of solar power generation. The firm has stated that it will set up the project in Gujarat, where its licensed distribution business unit will procure the power generated for fulfilment of its Renewable Purchase Obligation (RPO).

The firm has signed a 25-year agreement and the tariff has been set at Rs 2.22 per kWh. The firm expects the work on the commissioning of the project to be completed in 18 months, and at an estimated cost of Rs 1250 crore. 

The firm revealed that with this new project its renewable portfolio has expanded to over 1300 MW. With 786.5 MW capacity currently operational (648.5 MW wind power and 138 MW solar power), and 515 MW capacity under development (115 MW wind power and 400 MW solar power).

In February, the Rs 13,641 crore integrated power utility of the Torrent Group had announced that it had emerged as the highest bidder for the sale of 51 percent stake in the Power Distribution Companies (Discoms) in the UT of Dadra & Nagar Haveli and Daman & Diu. The bidding for which had been undertaken as part of the Government of India’s initiative to privatise distribution utilities of Union Territories to usher in efficiency, which will provide a model for emulation by other utilities across the country.

According to people aware of the developments, the firm submitted a massive bid of Rs 555 crore to take up the majority share in the Discoms. Beating ReNew Power Ventures and Adani Group, with each bidding around Rs 450 crore and Kolkata-based CESC that bid around Rs 300 crore in the sale process run by SBI Capital Markets.

In January 2019, the firm had issued a Request for Selection (RfS) for procurement of power through competitive bidding process followed by e-reverse auction up to 300 MW from grid-connected solar photovoltaic power projects in Gujarat.