CESC Awards 600 MW Hybrid Projects, Subsidiary Secures Half

Introduction to CESC's Renewable Energy Expansion

Power utility CESC Ltd has concluded its recent tender for wind-solar hybrid power, awarding contracts for a total capacity of 600 MW. The projects, connected to the Inter-State Transmission System (ISTS), were awarded to four companies following a tariff-based competitive bidding process. This move underscores CESC's strategic push to expand its renewable energy portfolio and meet its renewable purchase obligations. The subsidiary, Purvah Green Power Private Ltd, emerged as the largest winner, securing half of the total capacity on offer.

Breakdown of the Project Awards

The 600 MW capacity was distributed among four successful bidders. Vismaya Renewables India Project Private Ltd secured 100 MW at the most competitive tariff of ₹3.74 per kWh. CESC's subsidiary, Purvah Green Power, was awarded 300 MW at a tariff of ₹3.75 per kWh. The remaining 200 MW was split equally between Hexa Climate Solutions Private Ltd and Sprng Energy Private Ltd, both at a tariff of ₹3.75 per kWh. Sprng Energy was awarded its 100 MW share from a quoted capacity of 200 MW under the bucket-filling method.

Contractual Framework and Project Terms

The successful developers will develop the projects on a build-own-operate (BOO) basis. CESC will enter into 25-year Power Purchase Agreements (PPAs) with each of the four companies. The scope of work for the developers includes setting up the wind-solar hybrid power projects, establishing the necessary transmission infrastructure up to the interconnection point, and securing all land and regulatory approvals. The projects must be designed for interconnection with the ISTS network at a voltage level of 220 kV or higher.

Technical Specifications and Compliance

The tender guidelines mandate specific technical requirements to ensure project quality and performance. The wind and solar components of the hybrid projects must maintain a minimum capacity ratio of 2:1. Developers are required to use type-certified wind turbine models and solar modules that are listed in the Approved List of Models and Manufacturers (ALMM). Furthermore, the projects are expected to be completed within 20 months from the date of signing the PPA. The declared annual Capacity Utilisation Factor (CUF) must be at least 50% throughout the PPA term.

Subsidiary's Role and Corporate Governance

The allocation of 300 MW to Purvah Green Power, a CESC subsidiary, is classified as a related-party transaction. However, the company has clarified that the project was secured through a competitive bidding process and is being executed on an arm’s-length basis. This ensures transparency and adherence to corporate governance standards. The other three contracts were awarded to domestic entities and do not fall under the category of related-party transactions.

Background of the Tender Process

CESC had issued the Request for Selection (RfS) for this 600 MW tender in November 2025, with a bid submission deadline of January 19, 2026. The process was designed to attract serious developers through significant financial requirements, including an Earnest Money Deposit (EMD) of ₹9,00,000 per MW and a Performance Bank Guarantee (PBG) of ₹22,00,000 per MW for the allotted capacity. These measures are intended to ensure timely project completion and compliance with the PPA terms.

CESC's Broader Green Energy Initiatives

This 600 MW auction is part of a larger, consistent strategy by CESC to bolster its presence in the renewable energy sector. In January 2026, its subsidiary CESC Green Power Ltd signed a Memorandum of Understanding (MoU) with the Uttar Pradesh government. This agreement involves an investment of approximately ₹3,800 crore to establish a 3 GW solar cell and module manufacturing plant, a 60 MW solar power plant, and other ancillary facilities in the state. Additionally, in February 2026, Purvah Green Power received a Letter of Award from the Solar Energy Corporation of India (SECI) for a 250 MW ISTS-connected wind power project at a tariff of ₹3.69 per kWh.

Market Reaction and Conclusion

Following the announcement, the shares of CESC Ltd experienced a minor dip, closing at ₹156.20 on the BSE, down by 0.41%. The award of these 600 MW projects reinforces CESC's commitment to diversifying its energy mix and contributing to India's national clean energy targets. By securing long-term renewable power at competitive tariffs, the company is positioning itself for sustainable growth while ensuring a stable power supply for its distribution areas. The successful commissioning of these projects will be a key milestone in its green energy journey.