TANGEDCO Solar Tariff

In the 1,500 MW Tamil Nadu Generation and Distribution Corporation (TANGEDCO) tender, Raasi Green Earth Energy won the bid to develop 100 MW of solar by quoting Rs.3.47 (~$0.05364)/unit. This is the lowest solar tariff ever quoted in the state of Tamil Nadu.

“The tariffs quoted ranged between a high of Rs.4 (~$0.06184)/unit and a low of Rs.3.47 (~$0.05364)/unit. Sai Jyothi Infrastructure Ventures Private Limited quoted Rs.3.60 (~$0.05565)/unit to develop 54 MW;Solitaire BTN Solar Private Limited quoted Rs.3.69 (~$0.05705)/unit to develop 150 MW; and Narbheram Vishram and NVR Energy Private Limited quoted Rs.3.85 (~$0.05952)/unit to develop 100 MW each,” stated a TANGEDCO official.

The TANGEDCO official further stated, “Rays Power Infra quoted Rs.3.85 (~$0.05952)/unit to develop 200 MW; Dynamite Solar Private Limited quoted Rs.3.87 (~$0.05983)/unit for 5 MW; ReNew Solar Energy Rajasthan Limited quoted Rs.3.89 (~$0.06014)/unit to develop 100 MW; and Clean Solar Power Ludhiana Private Limited quoted Rs.3.90 (~$0.06029)/unit for 104 MW.”

The TANGEDCO official added that a lot of small players participated in the tender. Sri Green and Clean Power quoted Rs.3.90 (~$0.06029)/unit for 6 MW; Sunlight quoted Rs.3.90 (~$0.06029)/unit for 1 MW; Talettutayi Solar quoted Rs.3.90 (~$0.06029)/unit for 50 MW; and Dev International quoted Rs.3.95 (~0.06107)/unit to develop 1 MW.

Three developers quoted a tariff of Rs.3.96 (~$0.06122)/unit to develop 10 MW each and Shapoorji Pallonji also quoted Rs.3.96 (~$0.06122)/unit to develop 50 MW. NLC India, which had bid for the entire capacity tendered, quoted Rs.3.97 (~$0.06137)/unit.

The TANGEDCO official said, “We are happy with the tariffs quoted, we knew due to GST rate implementation we would not get a Bhadla tariff rate of Rs.2.44 (~$0.03772)/unit. Even Rs.3.47 (~$0.05364)/unit is revolutionary for Tamil Nadu.”

VSR Solar Power and GRT Jewellers India were other bidders who bid below Rs.4 (~$0.06184)/unit; they bid Rs.3.98 (~$0.06153)/unit and Rs.3.99 (~$0.06168)/unit, respectively.

Mercom previously reported that TANGEDCO received technical bids aggregating 3,700 MW in response to the 1,500 MW solar tender issued in May 2017.

Raj Prabhu Raj is a recognized thought leader in clean energy markets where his work has influenced policies worldwide. He has a deep understanding of regulatory policy and clean energy markets and his market and opinion pieces are regularly published on both MercomIndia.com and other leading publications globally. Raj is also a regular speaker and presenter on clean energy policy and finance topics at conferences worldwide. Raj attended the KLE College of Science in Bangalore, India for physics and chemistry, and holds a Bachelor of Science Degree in Hotel and Institutional Management from Johnson and Wales University, Rhode Island. More articles from Raj Prabhu.