SJVN Discovers Tariff Of Rs 6.74/kWh for 6000 MWh FDRE Tender

SJVN's December 2024 FDRE tender  for 1500MW/6000 MWh of  power to be delivered only during peak hours has delivered handsomely. Drawing a strong response in line with the response seen on storage linked tenders recently, the tender was oversubscribed  3.31 times  before seeing ghe emergence of Singapore-based Sembcorp Industries (150 MW) Reliance Nu Energies(750 MW), Solarcraft Power India (Actis PE Owned  Blupine Energy) with 150 MW  and Acme Solar (600 MW) emerging as winners.  

The tender results almost double up the FDRE linked tenders awarded in the past few months, thanks to the lull that was seen post mid-2024 due to various reasons, notably the inability of implementing agencies to stitch up buyers for these tenders from discoms. In fact, post this tendersome of those earlier projects may discover it has become tougher to find buyers, considering prices in the range of Rs 8 for most of those. 

SJVN had relaxed conditions marginally for this tender,  asking for only 90% monthly availability, unlike the 95% seen in many previous tenders. A vastly improved market situation, especially a drop in storage prices seen until August has meant a response of 4.9 GW for the 1.5 GW tender, an oversubscription that seemed unlikely till a few months back.

NTPC's NVVN had a recent BESS tender of 4 hours had discovered a price of  Rs 6.64/kWh, including 30% VGF support.

Coming right after RUVNL's incredible Rs 1.77kWh bids for a pure BESS based tender earlier this week, the scene is certainly set for a sharp acceleration in storage execution in India, provided the buy side gets its act together. Discoms have been holding out for lower prices, a repeat of the disaster that befell almost 15 GW of renewable tenders through 2022-24, and one hopes things will move faster on the storage front. For perspective, Adani recently  won a thermal plant bid from the Bihar government at over Rs 6 per unit, making it clear where the future lies if only the discoms would open their eyes to it.

SECI's own tender for4800 MWh of peak supply released on September 30 will be in focus now for a possible new record, considering the recent trend seen, although that might face challenges due to the creeping rise in solar module prices with the new ALCM norms it will be subject to.