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PNC Infratech Ltd has secured a landmark contract from NHPC Ltd for a 300 MW Inter-State Transmission System (ISTS)-connected solar power project integrated with a 150 MW/600 MWh energy storage system. Awarded through a competitive reverse auction held on July 15, 2025, the project marks PNC’s formal entry into large-scale renewable energy infrastructure, with a quoted tariff of Rs 3.13 per kWh—one of the most competitive bids in the sector.
Here’s a comprehensive breakdown of the project, its implications, and what it signals for India’s clean energy ambitions.
Key Highlights From the Award
- PNC Infratech emerged as the lowest bidder (L1) in NHPC’s 1,200 MW solar tender
- The company secured 300 MW solar capacity paired with 150 MW/600 MWh energy storage
- Tariff finalized at Rs 3.13 per kWh, reflecting cost efficiency and competitiveness
- The project will operate under a 25-year Power Purchase Agreement (PPA)
- Scheduled Commencement of Supply Date (SCSD) is set for 24 months from the PPA’s effective date
Project Scope and Strategic Importance
1. Renewable Energy Integration
- The ISTS-connected solar project will feed clean energy into the national grid
- The 600 MWh storage system ensures grid stability and peak-hour supply reliability
- The project supports India’s goal of achieving 500 GW of non-fossil fuel capacity by 2030
2. Competitive Tariff Advantage
- At Rs 3.13 per kWh, PNC’s bid undercuts prevailing solar tariffs, enhancing affordability
- The pricing reflects technological efficiency and optimized project design
- It positions PNC as a cost leader in the solar-plus-storage segment
3. Long-Term Operational Framework
- The 25-year PPA ensures predictable revenue and operational continuity
- The project will be commissioned within two years, aligning with NHPC’s rollout timeline
- Energy storage integration allows for time-shifted dispatch and better grid utilization
4. Broader Tender Context
- NHPC’s tender involved 1,200 MW solar capacity with 600 MW/2,400 MWh storage
- Other bidders included Reliance Infrastructure, SAEL Industries, JBM Renewables, and Navayuga Engineering
- PNC’s win highlights its growing capabilities beyond traditional infrastructure
Financial and Market Implications
- The project is expected to generate substantial economic value through clean energy sales
- It diversifies PNC’s portfolio, reducing dependence on road and highway contracts
- The award may improve investor sentiment and support future fundraising for green projects
- PNC’s stock rose 4.48% post-announcement, reflecting market optimism
Execution Timeline and Technical Milestones
- Reverse auction date: July 15, 2025
- PPA signing expected by Q4 FY26
- SCSD: 24 months from PPA effective date
- Operational period: 25 years post-SCSD
- Technology partners and EPC contractors to be finalized in coming quarters
Conclusion: A Defining Moment for PNC’s Green Transition
PNC Infratech’s successful bid for NHPC’s solar-plus-storage project marks a strategic pivot toward sustainable infrastructure. With a competitive tariff, robust energy storage, and long-term operational visibility, the project positions PNC as a serious contender in India’s renewable energy space. As the country accelerates its clean energy transition, PNC’s entry into solar infrastructure could redefine its growth trajectory and contribute meaningfully to national decarbonization goals.
Sources: Business Standard, CNBC TV18, Moneycontrol, PSU Connect, SolarBytes, Capital Market News
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