Maharashtra Tenders 1 GW of Solar with a Ceiling Tariff of ₹2.80/kWh

The Maharashtra State Electricity Distribution Company Limited (MSEDCL), has issued a request for selection (RfS), calling for the purchase of power on a long-term basis from 1,000 MW of grid-connected solar projects (phase III).

The ceiling tariff has been set at ₹2.80 ($0.04)/kWh.

The last date for submission is July 9, 2019. A pre-bid meeting will be held on June 19, 2019.

An earnest money deposit (EMD) of ₹5 million ($ 72,158) will be required to participate in this tender.

The MSEDCL, to meet its renewable purchase obligation (RPO) and future power needs, will be purchasing the solar power from these projects and will sign a power purchase agreement (PPA) for 25 years.

The RfS document states that the bidders are free to avail fiscal incentives like accelerated depreciation, concessional customs and excise duties, tax holidays, and benefits from trading carbon credits.

For intra-state projects, the minimum bidding capacity has been set at a minimum of 5 MW. In case of import of energy during a month, payment must be made to the MSEDCL in line with the stipulated rates.

For inter-state projects, the minimum bidding capacity has been stipulated at 50 MW, and all related transmission charges and losses are to be borne by the selected bidder. The successful bidder is expected to attain financial closure within nine months from the date of signing the PPA.

Solar PV projects using crystalline silicon or thin film, with or without trackers are to be considered for this project, the RfS document states. It adds that only commercially established and operational technologies are to be used.

The cells and modules used must be from manufacturers included in the ALMM list of the Ministry of New and Renewable Energy (MNRE).

Previously, the solar tender floated in Maharashtra for 1 GW of grid-connected solar projects under Phase-II tender had managed to attract plenty of bidders and was oversubscribed by 900 MW. The capacity was tendered in December 2018. Initially, the MSEDCL had set an upper ceiling tariff at ₹2.80 (~$0.039)/kWh, and the bid submission deadline was January 3, 2019. Later, the ceiling was revised to ₹2.90 (~$0.041)/kWh while the bid submission deadline was extended to January 22, 2019.

Recently, the state also issued a request for selection for the purchase of power from 1,000 MW (100 MW X 10 clusters) of grid-connected floating solar PV power project on Ujjani dam in Solapur district.