Renewable energy company Avaada Energy said it had secured a 421 MW solar project from Damodar Valley Corporation (DVC) on Friday.

The project was awarded through a competitive tender followed by an electronic reverse auction where Avaada emerged as the winner with a bid of Rs 2.70/kWh.

“It won a 421 MW (DC) ISTS-connected solar PV tender in an auction conducted by REC Power Development and Consultancy Ltd (RECPDCL) on behalf of DVC,” Avaada said in a statement.

Under the terms of the tender, the two entities will sign a 25-year power purchase agreement, and the project will be commissioned within 18 months.

The plant is expected to generate approximately 750 million units of green energy annually, reducing emissions by 6,98,250 tons of CO2 equivalent. The solar project can power half a million homes.

“India is one of the world’s fastest-growing markets for renewable energy. With ambitious goals and a commitment to a green future, we believe many opportunities will be unlocked. We see this as a win for our stakeholders and us,” Chairman Vineet Mittal said, the head of the Avaada Group.

DVC is the main central government unit responsible for generating and distributing electricity in the Damodar River region straddling Jharkhand and West Bengal.