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More than 12 GW of capacity has been awarded through hybrid and RTC (round-the-clock) renewable energy projects so far in the country, according to analysts at rating agency ICRA
From 2018 to till date, about 12.8 GW of capacity has been awarded via hybrid and RTC routes. The current fiscal alone has seen RTC and hybrid tenders for about 4 GW of capacity so far. Some of the major projects include Railways’ 960 MW project, Solar Energy Corporation of India Ltd (SECI)’s 1200 MW hybrid project, and 600 MW and 1184 MW RTC projects of RUVNL (Rajasthan Urja Vikas Nigam Ltd) and SVJN respectively.
The share of renewable energy (RE)-based RTC projects is expected to rise in the upcoming bids as already seen from the tenders issued by SECI in the current fiscal.
“We are currently seeing good traction in the RTC projects and that is the right direction for the sector as it will address the concerns over the intermittent and variable nature of renewable energy. It is also very important from the grid stability point of view over the long term. So, there is a greater thrust on RTC tenders now,” said Girishkumar Kadam, Senior Vice President and Co-Group Head, Corporate Ratings, ICRA.
While RTC RE projects witness a gradual pick up, storage cost will be a major drive of RTC projects going forward.
The capital cost for storage systems is higher now. Currently, the capital cost for RTC projects with pumped storage is Rs.6.5-7 crore per MW, while it is higher at Rs.12-13 crore per MW for RTC projects with battery energy storage systems.
“In terms of tariff, it works out to Rs.6 per unit for pumped storage, while it is Rs.9 per unit in battery storage now, said Sabyasachi Majumdar, Senior Vice President and Group Head, Corporate Ratings, Icra.
Though the current tariff of RTC projects is higher when compared with standalone renewable energy projects, the industry expects the capital cost for RTC projects to come down in 3-4 years, thereby improving its tariff competitiveness. However, bid tariffs for RE-RTC projects remain highly competitive as against conventional generation sources.
Meanwhile, recent SVJN’s tender for 1184 MW capacity discovered the lowest price of Rs.4.38 per unit for supplying RTC power.
Between pumped and battery storage, the pumped system is more suited now due to lower capital cost, zero import dependency and a longer lifetime of 30 years. The battery storage system’s lifespan is pegged at a maximum of 15 years, and then there will be replacement and capital costs.
“Amid pros and cons in battery storage, both pumped storage and battery storage systems are expected to co-exist and we see the adoption of both technologies from many developers. The Government is also promoting both technologies,” said Kadam.
As per the CEA (Central Electricity Authority) plan, India requires 40 GW of storage by 2030. Policy and regulatory actions are in the right direction, though it may take some time for implementation, he added.
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