CESC has entered into Power Purchase Agreements (PPAs) for a total of 600 MW from grid-connected wind-solar hybrid power projects. The agreements involve four companies: Vismaya Renewables India Project Private Limited, Hexa Climate Solutions Private Limited, Purvah Green Power Private Limited, and Sprng Energy Private Limited.
Each of the companies will supply 100 MW, except for Purvah Green Power, which will supply 300 MW. The agreements are set for a long-term period of 25 years, ensuring a stable supply of renewable energy. The applicable tariffs for these agreements are set at ₹3.75 per kWh for Purvah Green Power, Hexa Climate Solutions, and Sprng Energy, while Vismaya Renewables will supply at ₹3.74 per kWh.
Purvah Green Power is a subsidiary of CESC, making it a related party transaction. However, the company has clarified that the transaction is conducted on an arm’s length basis and follows a tariff-based competitive bidding process.
These agreements are a part of CESC’s strategic move to enhance its renewable energy portfolio, aligning with the guidelines set by the Ministry of Power, Government of India, for the procurement of power from grid-connected wind-solar hybrid power projects.
Disclaimer: This article is based on a regulatory filing submitted to the National Stock Exchange of India (NSE).