Reliance NU Suntech, a subsidiary of Reliance Power, has entered into a 25-year Power Purchase Agreement with the Solar Energy Corporation of India, marking one of India's largest power offtake deals and underscoring the country's shift towards renewable energy. The agreement, which was finalized in under five months. Reliance NU Suntech will supply 930MW of solar power integrated with a 465MW/ 1,860MWh battery energy storage system at a fixed tariff of INR3.53 per kWh. This project is expected to be completed within 24 months and will require an investment of around USD 1.19 billion.

The project entails the development and commissioning of an integrated solar and battery energy storage system, which will be the largest such single-location facility in Asia once operational. Reliance NU Suntech was awarded the largest allocation in SECI's Tranche XVII auction in December 2024, securing 930MW of solar capacity and a 465MW/1,860MWh BESS. The company has provided a Performance Bank Guarantee of INR3.78bn to SECI, completing the bidding process.

The allocation was part of a competitive bidding process involving five major energy companies competing for 2,000MW of Inter-State Transmission System-connected solar projects and 1,000 MW/4,000 MWh of BESS capacity. Reliance NU Suntech's winning bid highlights the company's commitment to renewable energy and its efforts to expand its presence in the sector. The project will require over 1,700 MWp of installed solar capacity to meet the contracted capacity, making it one of the largest solar projects in the country.

The Power Purchase Agreement with SECI is a significant milestone for Reliance NU Suntech, as it marks a major step towards achieving its renewable energy goals. The company's parent, Reliance Power, has an operating portfolio of 5,305MW, including the 3,960MW Sasan Power, an integrated coal-based power plant in the Indian state of Madhya Pradesh. The investment in the solar and BESS project is expected to further diversify the company's energy mix and reduce its reliance on fossil fuels.

Reliance Power's investment in renewable energy is part of a larger trend in India, where the government has set ambitious targets to increase the share of non-fossil fuels in the energy mix. The country aims to achieve 500GW of non-fossil fuel capacity by 2030, and companies like Reliance Power are playing a crucial role in achieving this goal. The development of large-scale solar and BESS projects like the one announced by Reliance NU Suntech will be essential to meeting this target and reducing India's dependence on imported fossil fuels.

In recent years, Reliance Industries, the parent company of Reliance Power, has been expanding its presence in the energy sector through strategic partnerships and investments. In December 2024, Russia's Rosneft signed a ten-year agreement to supply around 500,000 barrels per day of crude oil to Reliance Industries. This agreement highlights the company's efforts to secure stable supplies of crude oil and reduce its reliance on spot markets.

The completion of the solar and BESS project is expected to have a significant impact on the Indian energy sector, as it will provide a reliable source of renewable energy and help to reduce the country's carbon footprint. The project will also create new job opportunities and stimulate local economic growth, making it a significant contributor to India's sustainable development goals. As India continues to transition towards a more sustainable energy mix, companies like Reliance Power will play a vital role in driving this change and achieving the country's renewable energy targets.

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