None of the locations in Odisha have been deemed to be suitable for installing wind power projects, prompting the state to buy from elsewhere
Faced with hurdles in developing wind power plants, Odisha has turned to other states for sourcing the unconventional energy to help meet its Renewable Purchase Obligation (RPO) mandate.
Gridco has signed a power sale agreement (PSA) with PTC India Ltd to avail of 50-Mw wind power allocated through the Solar Electrification Corporation of India (SECI) under the ‘1,000 Mw ISTS Connected Wind Power Projects Scheme’ of the Ministry of New and Renewable Energy (MNRE).
It had also signed a PSA with SECI in 2017 for availing of 100-Mw wind power under the ‘ISTS Connected Wind Power Projects Scheme, Phase-II’ of the MNRE.
Out of the 50-Mw wind power in Phase-1, Gridco is already availing of 35 Mw since August last year.
“The 150-Mw wind power is expected to be made available to Gridco during FY 2020 — 50 Mw in Phase-I through PTC India Ltd and 100 Mw in Phase-II of ISTS-connected MNRE wind power scheme through SECI. In view of this, Gridco is hopeful to procure around 260 MU (million units) of wind energy at the rate of 353 paise per unit for an amount of Rs 7.76 crore from the above project,” Gridco stated in its application for approval of aggregate revenue requirement (ARR) and determination of Bulk Supply Price (BSP) for 2019-20 before the Odisha Electricity Regulatory Commission (OERC), the state’s power regulator.
None of the locations in Odisha have been deemed to be suitable for installing wind power projects, prompting the state to buy from elsewhere. Presently, Gridco’s renewable energy portfolio has a preponderance of solar power. After its maiden solar tenders in July last year, Gridco has signed a long-term power purchase agreement (PPA) spanning 25 years with Aditya Birla Renewables for the purchase of 75 Mw of solar power. The Aditya Birla Group company emerged as the lowest bidder at the solar auctions, quoting a tariff of Rs 2.79 per unit. Odisha is now gearing up to invite bids for auctions of 550-Mw solar power.
Separately, Gridco, in August 2018, had inked a PSA with SECI for buying 300-Mw solar power at a levelised tariff of Rs 2.72 per unit. The power is expected to be fed to the state grid from FY 2020 onwards.
Besides solar power, the bulk power buyer and trader is now diversifying to other green energy sources, primarily wind power, to fill the void in its RPO.