1. TPREL will deliver renewable energy to the grid during peak demand hours under a contract awarded by SJVN.
2. The financial terms of the deal have not been disclosed, but TPREL must deliver the energy to commercial operations within 24 months of the signing of the PPA.
3. FDRE tenders, such as the one won by TPREL, are seen as an ideal structure for encouraging investment in energy storage in India according to research groups.
Tata Power Renewable Energy Limited (TPREL) has been awarded a contract to deliver renewable energy to the grid during peak demand hours within 24 months of signing a Power Purchase Agreement (PPA). The financial terms of the deal have not been disclosed. TPREL was awarded the contract in a tender hosted by SJVN, a joint venture between the government of India and the state government of Himachal Pradesh.
SJVN has been selected to host FDRE tenders, which are seen as an ideal structure for encouraging investment in energy storage in India. Research groups have stated that energy storage, including pumped hydro energy storage and batteries, will be a major disruptor in India’s power market in the coming decade. Over 8GW of tenders to procure energy storage resources were launched in 2023 by government agencies like SECI.
The FDRE tenders, recently introduced to the market, are said to create a win-win scenario for developers and offtakers. TPREL’s deal with SJVN under an FDRE requirement marks a significant step in integrating diverse renewable energy sources to contribute to India’s renewable energy targets. India aims to deploy 500GW of non-fossil fuel energy sources by 2030 and will require 74GW/411GWh from PHES and BESS resources by 2032 to achieve this goal.