Reliance Power Shares Surge as Anil Ambani Secures New Electric Vehicle Sector Contract

Reliance Power's Entry into the Electric Vehicle Sector

Anil Ambani's Reliance Power has secured a significant 500 MW battery storage contract, marking its entry into the electric vehicle sector. The company won this contract through an e-reverse auction (eRA) organized by the Solar Energy Corporation of India (SECI) on September 11, 2024. This auction was part of SECI's efforts to boost energy storage capacity nationwide. Reliance Power emerged successful in the competitive bidding by submitting a tariff bid of Rs 3.81999 lakh per MW per month.

Reliance Power Share Jumps

Following the major contract win, Reliance Power shares jumped 5 percent, reaching their upper circuit at Rs 31.32 on the BSE before closing at Rs 30.73. The company's market capitalization rose to Rs 12,344 crore on Monday.

Project Operation and Competitive Bidding

• The contract involves the installation of a total of 1000 MW of standalone BESS units, awarded on a build-own-operate (BOO) model for On Demand usage under a tariff-based competitive bidding process.
• Reliance Power has secured 500 MWh of this capacity, marking a significant entry into the renewable energy and storage sector, a company spokesperson mentioned.
• The competitive bidding saw Reliance Power submitting a tariff bid of Rs 3.81999 lakh/MW/month.

Setting New Tariff Standards

This new tariff benchmark represents one of the lowest rates for BESS tenders at the 400 KV level in India to date. The delivery point for the project shall be 400 kV Fatehgarh(ATL) PS Rajasthan, and the scheduled commissioning date for the full capacity will be 24 months from the effective date of the BESPA (Battery Energy Storage Purchase Agreement).

The auction process witnessed participation from several key industry players, and Reliance Power’s successful bid highlights the company's strategic shift towards renewable energy and storage solutions, promising increased competition and efficiency in the sector. The introduction of such competitive tariffs is expected to set new standards and drive further advancements in India's energy storage capabilities. (With inputs from PTI)