Ellume Solar, a solar engineering, procurement, and construction company, has received a letter of award from Maharashtra State Power Generation Company (MAHAGENCO) to develop 100 MW grid-connected solar power projects in Aurangabad.

Ellume won the project by quoting a tariff of ₹2.97 (~$0.036)/ kWh to supply power to agricultural feeders on a public-private partnership model under Mukhyamantri Saur Krishi Vahini Yojna (MSKVY).

Ellume Solar must submit the finalized locations to set up the project by March 23, 2024.

Ellume must also submit a performance bank guarantee of ₹500,000 (~$6,032)/ MW before signing the power purchase agreement.

The tender was floated in August 2022 to develop 600 MW (100 MW x 6) solar projects. The projects were allotted in Nagpur, Amravati, Aurangabad, Konkan, Nashik, and Pune.

The uncertified land for the projects could be owned or leased near the 11 kV substation of Maharashtra State Electricity Distribution Company (MSEDCL).  Ellume must ensure and assess the capacity and grid connectivity of the substation.

Ellume must construct and erect a complete evacuation line along with availability-based tariff meters from the switchyard of the solar power project to the nearest MSEDCL substation. Meters will be located at the MSEDCL substation.

The Maharashtra Electricity Regulatory Commission has approved the tariff of ₹3.04 (~$0.037)/kWh, which includes the discovered tariff of ₹2.97 (~$0.036) plus a ₹0.07 (~$0.00084) trading margin.

In the same tender, Juniper Green had also bid to develop 50 MW solar projects each in Amravati and Pune at a tariff of ₹3.7 (~$0.045)/ kWh. However, their refusal to match Ellume’s lower tariff led to their disqualification, leaving 500 MW of the tender unallocated.

After winning the bid, Ellume Solar proposed to add another 400 MW capacity across Nashik, Amravati, Nagpur, and Pune at the same tariff that MAHAGENCO approved. MSEDCL initially opposed the expansion because it deviated from the bidding guidelines but later withdrew its opposition after adjustments were made to align with Ministry of New and Renewable Energy guidelines.

Despite this, MERC decided not to approve the additional 400 MW capacity to maintain the integrity of the bidding process. The commission suggested that Ellume Solar could instead participate in the forthcoming MSKVY 2.0 Program, which is still in the tendering phase.

Participation under this would allow Ellume to potentially secure the additional capacity, benefit from direct financial incentives, and avoid the trading margin of ₹0.07 (~$0.00084)  associated with the initial 100 MW project.

In the meantime, the MERC advised MAHAGENCO and MSEDCL to submit a separate petition if they wish to pursue the 400 MW expansion.

Subscribe to Mercom’s India Solar Tender Tracker to stay on top of tender activity in real time.