Hexa Climate signs PPA with NHPC for 160 MW FDRE project

Hexa Climate has signed a power purchase agreement (PPA) with NHPC Limited for a 160 MW Firm and Dispatchable Renewable Energy (FDRE) project. The project will supply round-the-clock renewable power and is designed to provide firm electricity beyond solar generation hours.

The project has a contracted capacity of 160 MW, comprising 80 MW base capacity and an additional 80 MW under the green-shoe option. It is expected to operate at an annual capacity utilisation factor (CUF) of 65%, enabling it to qualify as firm renewable power.

Power supply arrangement

Under the arrangement, NHPC will act as the intermediary procurer, while Punjab State Power Corporation Limited (PSPCL) will be the end distribution company (discom) purchasing the power.

The project is connected to the Inter-State Transmission System (ISTS) and will supply power under a 25-year agreement.

Tariff and regulatory approvals

The tariff for the project has been discovered through a competitive bidding process at Rs 4.33 per kWh.

According to Hexa Climate, the tariff has been adopted by both the Central Electricity Regulatory Commission (CERC) and the Punjab State Electricity Regulatory Commission (PSERC), providing regulatory approval for the project.

Expected environmental impact

The company estimates that the project will avoid approximately 7.47 lakh tonnes of carbon dioxide (CO₂) emissions annually. Over the project’s operational life, total avoided emissions are estimated at around 18.7 million tonnes.

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