CESC Ltd said on Thursday, April 16, it has entered into power purchase agreements (PPAs) to procure a total of 600 MW of electricity from grid-connected wind-solar hybrid projects, according to an exchange filing.
The agreements have been signed with four entities — Vismaya Renewables India Project Private Ltd (100 MW), Hexa Climate Solutions Private Ltd (100 MW), Purvah Green Power Private Ltd (300 MW), and Sprng Energy Private Ltd (100 MW).
The company has also issued four letters of award (LoAs) to these entities following their successful bids under a tariff-based competitive bidding process. The bids were submitted in response to a request for selection issued by CESC, in line with the Ministry of Power’s guidelines dated August 21, 2023, for procurement from grid-connected wind-solar hybrid power projects, as amended from time to time.
As per the filing, all four projects involve long-term supply of hybrid power, with each PPA set to remain in force for a period of 25 years. The discovered tariffs range between ₹3.74-3.75 per kWh, depending on the project.
Among the awarded entities, Purvah Green Power Private Ltd is a subsidiary of CESC, making it a related party transaction.
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However, the company clarified that the project was awarded through a competitive bidding process and is being executed on an arm’s length basis in the ordinary course of business.
The other three entities are domestic companies with no promoter group linkage to CESC, the filing added.
Shares of CESC Ltd ended higher on Thursday, April 16, by 4.36% at 170.48 on the NSE.
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