Mumbai: The Brihanmumbai Electricity Supply and Transport (BEST) undertaking is taking a major step towards clean energy by signing a long-term power purchase agreement with the Solar Energy Corporation of India (SECI) for 220 MW of solar power and a 110 MW/440 MWh Energy Storage System (ESS).

The agreement, signed on August 31, will provide BEST with renewable power at a tariff of Rs 2.87 per unit for 25 years. The power will be sourced from various renewable energy project developers in Maharashtra.

The agreement was signed by BEST General Manager Dr Sonia Sethi, SECI Executive Director Atulya Naik and Deputy General Manager Sanjeev Singh. Senior officials from BEST’s electricity department were also present.

BEST currently has an overall power requirement of around 1,000 MW, of which nearly 33% comes from renewable energy sources. With the new agreement, the share of renewable and green energy in BEST’s power mix is expected to rise to 43%. The move will also help the undertaking meet its Renewable Purchase Obligation (RPO) targets.

A key component of the agreement is the Energy Storage System, which is expected to help BEST manage electricity demand during peak hours. Power stored during periods of lower demand can be utilised during the evening when electricity demand in Maharashtra is at its highest.

This could reduce BEST’s dependence on relatively expensive power during peak-demand periods and help keep its overall electricity procurement costs under control. The long-term availability of renewable power at a competitive tariff is also expected to provide greater stability in power procurement.

The move is significant from an environmental perspective as well. Increasing the share of solar and other renewable energy sources will reduce dependence on conventional sources and contribute to lowering carbon emissions.

With the new agreement, BEST is seeking to combine lower-cost power procurement, energy storage and a larger renewable energy portfolio, strengthening its transition towards a cleaner and more sustainable energy system for Mumbai.