BSES Yamuna Power Limited (BYPL), one of the three power discoms in Delhi has announced its agreement to meet 100 MW of its power requirements form wind energy that will help meet the company’s renewable purchase obligations (RPO).
As per the BYPL, the power is expected to be available to the discom from the third week of November 2019, for a period of 25 years, and will be available at a competitive tariff of Rs.2.52 per unit.
This agreement will pool in 400 MW of wind power for the two BSES discoms in Delhi. Earlier, BSES Rajdhani Power Limited (BRPL) had signed an agreement for 250 MW wind power and BSES Yamuna Power Limited (BYPL) for 50 MW. As per reports out of the 400MW wind power, the discoms will start receiving 100 MW from November this year, and the remaining 300 MW will be available from November 2019.
As per officials this is the “lowest tariff” for wind power and is also priced substantially lower than the average cost of long-term power purchasing agreements, which are above Rs.4.5 per unit.
The BSES renewable obligations come as a result of their announcement to procure 700MW of green energy back in 2015. This was termed as the largest private sector “green” bid under MNRE guidelines. As per the guidelines announced, BSES plans to procure renewal power at under Rs.5 per unit as opposed to Rs.6.19 per unit, which was the lowest rate in an earlier bid. Furthermore, it’s to help reduce the cost for the green energy basket by around Rs.200 crore annually besides promoting clean and green energy in the capital. For readers who wonder why, with solar park tariffs comfortably below the average of existing PPA, the BSES twins don’t purchase more, it can be linked to two factors that will need to be tackled soon. One is the intermittent nature of renewable power, which has an impact on grid stability, and second is the capital’s power requirements peaking at evening time, a time when renewables typically are at their lowest efficiency, especially solar. Thus, short of a major breakthrough in battery storage technology, Delhi will need to depend on other, more steady power sources to meet its majority power requirements.