MSEDCL Retenders 1 GW of Grid-Connected Solar Projects to Meet its RPO

The Maharashtra State Electricity Distribution Company Limited (MSEDCL) has retendered 1,000 MW of grid-connected solar photovoltaic (PV) projects in order to meet its Renewable Purchase Obligation (RPO).

The bid-submission deadline is April 27, 2018.

The scope of work includes the design, engineering, manufacture, supply, installation, testing, and commissioning of the grid-connected solar projects, and developing the transmission and distribution network up to the delivery point. MSEDCL has fixed ₹3 (~$0.047)/kWh as the upper tariff ceiling for this tender.

When contacted, an MSEDCL official told Mercom, “MSEDCL had organized a meeting and then we decided to cancel the December tender due to poor response. This is a retendering of the same.”

In December 2017, MSEDCL had tendered 1,000 MW of grid-connected solar PV projects in order to help it meet its Renewable Purchase Obligation (RPO). After that the bid-submission deadline was postponed due to poor response from project developers.

The minimum project capacity a bidder can bid for in the newly floated tender will be 5 MW at a single location for intrastate projects and standalone projects outside solar park.

For interstate transmission system-connected projects, the minimum project capacity to bid for will be 50 MW. A single bidder can bid for the entire capacity being tendered.

In case of the interstate projects, all transmission charges, and losses up to the delivery point will be to the account of the successful bidder. The bidders are required to obtain necessary clearances and permits as required for setting up the solar projects.

This is a global tender and the MSEDCL will enter Power Purchase Agreements (PPAs) with the successful bidders for a period of 25 years. The project developer must report the details of financing closure for the projects within seven months of signing the PPA.

In its request for selection (RfS), MSEDCL has stated, “The successful bidders will be free to operate their projects after the expiry of the 25 years of PPA term, any extension of the PPA period beyond 25 years will be through mutual agreements between the successful bidders and MSEDCL”.

In cases where the power generated is more than the maximum Capacity Utilization Factor (CUF) specified, the solar project developer will be free to sell the excess power to any other entity if the procurer refuses to buy the surplus.

In cases where the power generated is less than the minimum CUF specified, the solar project developer will pay for such shortfall in performance to MSEDCL, the compensation provided for in the PPA. However, this compensation will not be applicable under grid unavailability and other unforeseeable circumstances.

The projects must be commissioned within a period of 13 months from the date of execution of the PPA. However, projects with a capacity of 250 MW and above, if they are being developed outside of a solar park, can be commissioned within a period of 15 months from the date of execution of the PPA.

In March 2018, more than 3 GW of solar projects were tendered but just 1 GW of solar projects were auctioned across India according to Mercom’s India Solar Tender Tracker.

Saumy Prateek Saumy has been with MercomIndia.com as a staff reporter covering business and energy news since 2016. Prior to Mercom, Saumy was a copy editor at Thomson Reuters. Saumy earned his Bachelors Degree in Journalism & Mass Communication from the Manipal Institute of Communication at Manipal University. More articles from Saumy Prateek.