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Seci Power Sale Agreement

Solarpack began operations in India in 2015, when it began developing a portfolio of projects that resulted in winning its first AAE in India for a 104 MW project. The company today submitted an offer for the sale of energy for its 396 MW project and won 15% of the total offer at a selling price of 2.36 INR/kWh (about 28 euros/MWh). For this tendering process, some 12 energy sales offers were submitted, of which 7 were ultimately awarded. The AAE guarantees Solarpack an energy turnover of more than 42,400 million INR (approximately 501 million EUROS) over the life of the contract. Seci and NTPC sign PPAs with project companies after signing a back-to-back electricity sales contract with Discoms. Unlike the NTPC PPAs of 2016, the most recent ones announce the name of the Discom with which the back-to-back PPA was signed. NTPC`s most recent PPA is cancelled and terminated without liability, unless the rate is accepted by the nightclubs concerned (the only precedent of condition) of the nightclubs concerned that have signed PPAs with NTPC. Such a clause was not included in the PPA that signed NTPC in 2016. Investment in project development prior to adoption is exposed to the risk of cancellation of AAEs. In addition, the commissioning period is set in relation to the signing date, but it should be linked preferably to the date of adoption of tariffs by the relevant electricity regulatory commission. India Ratings has examined the fine print in several power purchase agreements (PPAs) signed between renewable energy developers and NTPC and SECI. They found that while AAEs emphasize that payment obligations are direct obligations, all other risks and obligations would be based on the changeover to the euro.

The emphasis on SECI and NTPC being only intermediaries and associating signed PPPs with a developer with a “Power Sale Agreement” (PSA) signed with a particular distribution company (whose name is listed in AAE) indicates a tendency to limit debts to seci and NTPC. Indeed, the newer tariffs, signed in 2019 by both SECI and NTPC, go even further when it comes to limiting their own exposure in the event of a failure on the part of the discoms. In July, we reported that SECI had announced the signing of two new agreements with two Power-Discoms in Delhi and Rajasthan. The third agreement was signed on 6 September 2019 with the Kerala State Electricity Board (KSEB). Seci under PSA will sell/supply 100 MW of wind power to Discom. announces the award of a long-term power purchase contract (AAE) in India. The award, which is the result of the competition process of the Solar Energy Corporation of India (“SECI”), the company founded by the Ministry of New and Renewable Energy of the Federal Government of India to facilitate the implementation of the National Solar Mission, involves the signing in the coming months of a 25-year PPP for its project, which is located in the state of Rajasthan and will reach commissioning in 2022. The project will represent a total investment of approximately 129 million euros. Seci is considered the most solvent buyer of renewable energy in India with a long-term AA-ICRA rating. The second agreement was signed with Rajasthan Urja Vikash Nigam Limited (RUVNL) for the sale of 750 MW of solar electricity under the management conditions of a PSA signed by the node agency. And now Discom has decided to buy 750 MW of additional solar electricity from SECI. The group rate is the weighted average of rates set for a given period of time in the context of tenders.

Some auctions lead to low bids than others, and it is relatively difficult to sell electricity at higher rates at DISCOMs. As a result, rates are grouped together, so that DISCOMs get electricity at average rates. Experts will tell you that the long-term cost of power will be close to zero. Even Mr. R.K. Singh, the Minister of MNRE, has repeatedly pointed out that electricity costs will be cut in half in the future over an as yet undetermined period. Does this mean that we have to stop everything to wait for the day? The state-of-the-art cabinet approved the project, which will yield 750 investments, said Shrikant Sharma,