Madhya Pradesh Urja Vikas Nigam (MPUVNL) has discovered the lowest tariff of ₹2.42 (~$0.029) /kWh in the auction for 300 MW grid-connected solar power projects under Component C of the Pradhan Mantri Kisan Urja Suraksha evam Utthan Mahabhiyan (KUSUM) program at various locations in the state.

MPUVNL floated the tender in October 2023 to install solar projects across Agar, Sagar, and Morena districts with 100 MW capacity each.

The department received bids for two districts, Agar and Sagar, whereas Morena projects received no offers.

The lowest tariff of ₹2.42 (~$0.029)/kWh was quoted by Purshotam Profiles for 100 MW capacity in the Agar district, and Sangamam Power Projects quoted ₹2.55 (~$0.031)/kWh for 100 MW capacity in the Sagar district.

According to an official source, the tariff range for tenders in the past has been around ₹2.94 (~$0.035)/kWh, making the recently discovered tariff the lowest tariff for the state.

The projects are yet to be awarded to the selected bidders pending the formal process.

The Madhya Pradesh Power Management Company will procure the power from the projects for 25 years.

The scope of work includes the design, engineering, supply, construction, erection, testing, and commissioning, including the construction of the bay and related switchgear at the sub-station, along with the comprehensive operation & maintenance for 25 years.

The substation to be considered for feeder solarization under Component-C of the PM KUSUM program should meet the following criteria:

• It should have at least one dedicated agricultural feeder from the 33/11 kV substation
• It should have at least one non-agricultural feeder from the 33/11 kV substation
• The 33/11 kV substation should be technically capable of accommodating the proposed capacity of the solar project under the feeder solarization program.

For any contract year except for the first year of operation, the renewable power generator will have to achieve a minimum CUF of 19% annually during the period of PPA.

The solar generator will be responsible for land and associated infrastructure to develop the project and connectivity with the 33/11 kV sub-station to confirm power evacuation by the scheduled commissioning date or the commercial operation date, whichever is earlier.

In January, the Ministry of New and Renewable Energy confirmed that the waiver of the domestic content requirement for solar cells used for feeder-level solarization under Component C of the PM KUSUM program will stay in place until March 31, 2024.

In October 2023, MPUVNL invited bids to select renewable power generators to set up 670 MW grid-connected solar power projects under Component C of the PM KUSUM program.

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