PNC Infratech Limited has emerged as one of the lowest bidders in a significant tender floated by NHPC Limited for a 1,200 MW solar power project with 600 MW/2400 MWh energy storage. The infrastructure development company has been awarded a substantial 300 MW solar power project with an integrated 150 MW/600 MWh energy storage system.

Tender Details

PNC Infratech has secured a 300 MW Inter State Transmission System (ISTS) connected solar power project, coupled with a 150MW/600MWh Energy Storage System (ESS). This project is part of a larger tender by NHPC Limited for setting up 1200 MW of ISTS-connected solar power projects with 600MW/2400MWh energy storage systems across India.

Competitive Bidding Process

The company emerged victorious through a Tariff Based Competitive Bidding (TBCB) process. The final selection was made via an electronic reverse auction mechanism. PNC Infratech's competitive edge was evident in its quoted price of Rs. 3.13 per kilowatt-hour, which secured its position as one of the lowest bidders.

Project Execution Timeline

According to the terms of the agreement:

1. The Scheduled Commencement of Supply Date (SCSD) is set at 24 months from the effective date of the Power Purchase Agreement (PPA).
2. The PPA's operational period is slated for 25 years from the SCSD.

Significance of the Project

This award represents a significant step for PNC Infratech in the renewable energy sector, particularly in large-scale solar projects with energy storage capabilities. The integration of a substantial energy storage system alongside the solar power project showcases the company's commitment to providing stable and reliable renewable energy solutions.

Company's Disclosure

In compliance with regulatory requirements, PNC Infratech has officially informed the stock exchanges about this development. The company has confirmed that neither the promoter group nor any group companies have any interest in NHPC Limited, the entity awarding the contract.

This project aligns with India's growing focus on renewable energy and the integration of energy storage solutions to address intermittency issues associated with solar power generation. For PNC Infratech, it marks a significant expansion in its portfolio and demonstrates its competitiveness in the evolving energy sector.

Market Response

Following the announcement, PNC Infratech's stock saw a positive market response, rising 5% to Rs 327.00. This increase reflects investor confidence in the company's expansion into the renewable energy sector and its potential for future growth.

PNC Infratech Limited has emerged as one of the lowest bidders in a significant tender floated by NHPC Limited, marking a major milestone in the company's renewable energy portfolio.

Project Details

PNC Infratech has been declared one of the lowest bidders for a 300 MW Inter State Transmission System (ISTS) Connected Solar Power Project, which includes a 150MW/600MWh Energy Storage System (ESS). This project is part of a larger 1200 MW solar power initiative with 600MW/2400MWh energy storage systems to be set up across India.

Competitive Bidding and Pricing

PNC Infratech secured the project through a Tariff Based Competitive Bidding (TBCB) process. The company quoted a competitive price of Rs. 3.13 per kWh, which was determined through an electronic reverse auction mechanism.

Project Timeline and Duration

According to the LODR filing, the project has significant timelines:

1. The project is to be executed within 24 months from the effective date of the Power Purchase Agreement (PPA).
2. The PPA will be operational for a period of 25 years after completion.

Strategic Importance

This project represents a strategic move for PNC Infratech into the growing renewable energy sector, particularly in large-scale solar projects with energy storage capabilities. The integration of energy storage systems is crucial for addressing the intermittency challenges associated with solar power generation.

Compliance and Transparency

In line with regulatory requirements, PNC Infratech has promptly disclosed this development to the stock exchanges. The company has also reminded its designated employees, immediate relatives, and connected persons about the ongoing closure of the trading window for the company's securities until 48 hours after the declaration of financial results for the quarter ended June 30.

This project award underscores PNC Infratech's growing presence in the renewable energy sector and its ability to compete effectively in high-value infrastructure tenders.