Tamil Nadu solar auction attracts 3.7 GW of bids
A tender by Tamil Nadu Generation and Distribution Corporation (TANGEDCO) to procure 1500 MW of solar power has been oversubscribed, with 3,780 MW of bids.
The tender, that attracted a total of 40 bidders intends to select qualified firms for the development of solar projects between 1 MW and 500 MW.
This strong interest means that solar tariff is set to fall below INR4 (US$0.015) per unit, which was the benchmark rate for the tender. The auction’s winners will sign power purchase agreements (PPA) at a fixed tariff for a period of 25 years.
Additionally, projects smaller than 50 MW will get 12 months from the signing of the PPA to complete installation, while bigger ones will have a period of 24 months. The 24-month deadline is said to be the longest India has ever seen which could have been one of the key points of the success of the solar tender.
This strong interest in the current auction contrasts to the lukewarm response to the previous two tenders of 500 MW each.
According to sources, a Tangedco official stated:
“There are companies which have bid for capacities of 1,500 MW, 400 MW, 250 MW and 100 MW.”
However, further details on the name of the companies involved in the bidding process have not been disclosed.
Recently, Tangedco signed an agreement with 16 bidders for 224-MW of solar capacity at Rs. 4.40 per unit from its 500 MW tender. The Tamil Nadu Electricity Regulatory Commission also gave the nod for agreements with GRT & Sons and GRT for 10 MW at Rs. 4.50 per unit from its earlier 500 MW tender.
Additionally, we have recently reported that the Solar Energy Corporation of India (SECI), a company of the Ministry of New and Renewable Energy (MNRE) launched another tender involving 1000 MW of the Interstate Transmission System (ISTS)-connected wind power projects under Tranche-II.
With the success of the first 1,000 MW wind auction, the MNRE decided to launch another round of wind auction for wind power projects, which will be developed on a build own and operate basis.
We have lately reported about other renewable energy projects in India:
