The Solar Energy Corporation of India (SECI) has once again extended the bid submission deadline for the tender to set up 500 MW (Phase I) of grid-connected solar photovoltaic (PV) projects in Tamil Nadu on Build Own Operate (B-O-O) basis.

This is the second extension after SECI took over the responsibility of this tender. An official document states that the new bid submission deadline is June 27, 2019, extended from the earlier date of May 27, 2019.

Tamil Nadu Generation and Distribution Corporation Limited (TANGEDCO) will be the buyer of power from these grid-connected solar PV projects. SECI will enter into power purchase agreements with the successful solar project developers for 25 years and enter into a power sale agreement with TANGEDCO.

SECI had tendered the capacity in April 2019 and had set the upper ceiling tariff at ₹2.85 (~$0.041)/kWh. The extension is once again because of the tepid response from developers.

Initially, it was TANGEDCO who had tendered the capacity in November 2018, but due to the poor response of bidders, it was canceled.

According to a report by Mercom, payment delays of more than a year to solar and wind developers seem to have tarnished the reputation of TANGEDCO. It was eventually forced to hand over the tendering responsibilities to SECI after failed multiple extensions.

According to Mercom India’s Solar Project Tracker, Tamil Nadu has an installed capacity of approximately 2.5 GW of solar PV. The state has 1.3 GW of solar projects under development as of Q1, 2019. However, due to delayed payments coupled with the curtailment of power purchase by TANGEDCO over the years, have been a deterrent to solar PV segment’s growth in the state.