Historic Solar and Storage Project Announced

In a landmark deal, Reliance Power has entered into a 25-year Power Purchase Agreement (PPA) with the Solar Energy Corporation of India (SECI) for a massive 1.4 gigawatts solar and battery storage project. This project, to be developed by Reliance's subsidiary Reliance Nu Suntech, represents the largest agreement signed by SECI in recent years.

Project Details and Investment

The project, which is set to be completed within the next 24 months, involves an investment of Rs 10,000 crore. Reliance will supply 930 MW of power at Rs 3.53 per unit from this single-location initiative. Additionally, it includes a battery storage system capable of providing a backup of 465 MW for four hours, enhancing the grid's reliability.

Significance of the Agreement

This agreement not only marks a significant milestone for Renewable Energy in India but also provides a solid foundation for the project's financial structuring, particularly in securing debt. The capacity awarded to Reliance was the largest in SECI’s tranche XVII auction, concluded in December 2024, with the company submitting a performance bank guarantee of Rs 378 crore to SECI.

Challenges in the Renewable Sector

Despite this progress, the renewable energy sector faces challenges, with approximately 40 GW of capacity offered in various SECI auctions struggling to secure PPAs, highlighting the importance of this agreement for future projects.