Tamil Nadu floats 500 MW solar tender with tariff cap

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From pv magazine India.

The Tamil Nadu Generation and Distribution Corporation (TANGEDCO) has tendered for 500 MW of grid-connected solar PV projects with an upper tariff ceiling of Rs3/kWh ($0.042/kWh).

With a bid-submission deadline of December 27, the move marks TANGEDCO’s first tender after an almost year-long hiatus.

Recently, TANGEDCO had secured approval from the Tamil Nadu Electricity Regulation Commission (TNERC) to float a solar and wind power tender for this financial year.

TNERC has approved three successive 500 MW tenders for grid-connected solar. Bidders must offer a minimum 5 MW, and there is a maximum 50 MW per location, although a single bidder can compete for the entire 500 MW capacity of each tendering exercise.

Government held up tender

TANGEDCO will sign a 25-year power purchase agreement with successful bidders, who will have a year to commission projects.

The tender organizer had sought permission for solar/wind tenders in April but a decision was delayed because the federal government wanted to amend some of the guiding principles.

TANGEDCO cancelled a 500 MW solar tender issued in January 2017, after the resulting tariff was Rs4.40/kWh.

The state distribution company has also issued a tender for 500 MW of wind power projects in the state, with Rs2.65/kWh as the tariff ceiling. The bid-submission deadline is December 28.

Tamil Nadu’s installed solar capacity is around 1.8 GW with another 1 GW in the pipeline. The state’s wind power capacity is 7,858 MW with a further 1 GW tendered.