Swelect, Grew and ReNew Win SECI’s Auction to Supply 400 MW Solar Modules

Solar Sector Records 81% Drop in VC Funding in Q1, Corporate Funding Down by 4%

High Interest Rates Affect Subsidies, Capital Costs of Renewables: Report

Threat of US Anti-Dumping Duties on Indian Solar Module Exports

Daily News Wrap-Up: RECPDCL’s Tender for 223 MW Solar Projects

RECPDCL Invites Bids for 223 MW ISTS-Connected Solar Projects

Clean Energy Tech Firm Ecozen Raises $30 Million for Global Expansion

SJVN Green Energy Invites Bids to Source Land for 200 MW Solar Projects in Assam

Avaada Inks ₹45 Billion Refinancing Deal for Four Solar Projects in Rajasthan

Daily News Wrap-Up: Application Process for ALMM Inclusion and Renewal


					<table id="amazon-polly-audio-table">
						<tr>
						<td id="amazon-polly-audio-tab">
							<div id="amazon-ai-player-label">Listen to this article</div>
							<div id="amazon-ai-player-container">
			<audio class="amazon-ai-player" id="amazon-ai-player" preload="none" controls   controlsList="nodownload" >
				<source type="audio/mpeg" src="https://cms.mercomindia.com/wp-content/uploads/2024/03/amazon_polly_64474.mp3?version=1710744774">
			</audio>
		</div>
							<div id="amazon-polly-subscribe-tab"></div>
							<div id="amazon-polly-by-tab"></div>
						</td>
						</tr>
					</table><p>The Maharashtra State Power Generation Company (<a href="https://mahagenco.in/" target="_blank" rel="noopener">MAHAGENCO</a>) has invited bids for the design, engineering, supply (except module), module unloading, erection, testing, and commissioning of 569 MW of grid-connected solar power projects.</p>
<p>The projects will be set up under the second phase of Mukhyamantri Saur Krushi Vahini Yojana (MSKVY 2.0) to solarize agriculture feeders in various districts of Maharashtra.</p>
<p>The bidders must also oversee the project&#8217;s operation and maintenance (O&amp;M) on an engineering, procurement, and construction (EPC) basis for three years.</p>
<p>The last day to submit the bids is May 5, 2024. Bids will be opened on May 10.</p>
<p>Bidder must pay a tender fee of ₹29,500 (~$356) and earnest money deposit of ₹200,000 (~$2,413)/ MW.</p>
<p>Bidders can bid for at least one location or a maximum of eight locations from the 33/11 kV Maharashtra State Electricity Distribution Company substations list.</p>
<p>The ceiling limit for each project site is set at ₹20 million (~$241,380)/ MW. The first-year O&amp;M cost limit is ₹400,000 (~$4,827)/ MW per project site.</p>
<p>Bidders should have experience in EPC execution of ground-mounted solar projects on turnkey for a cumulative capacity of not less than 40% of quoted capacity or higher capacity, out of which at least one project must have 2 MW or higher capacity at a single location.</p>
<p>However, the reference project capacity must have been in satisfactory operation for at least three months before the bid submission deadline.</p>
<p>The average annual turnover of the bidder should be at least ₹10 million(~$120,680)/ MW during the last three financial years. The bidder&#8217;s net worth as of the last day of the previous financial year must be positive.</p>
<p>Recently, MAHAGENCO <a href="https://www.mercomindia.com/maharashtra-invites-bids-for-supply-solar-modules" target="_blank" rel="noopener">issued</a> a tender inviting bids for the manufacture and supply of 750 MWp of solar modules for projects being developed under MSKVY 2.0 across the state.</p>
<p>Earlier, MAHAGENCO <a href="https://www.mercomindia.com/maharashtra-invites-bids-grid-connected-solar-projects" target="_blank" rel="noopener">invited</a> bids for the procurement of power on a long-term basis through a competitive bidding process from 5,000 MW grid-connected solar photovoltaic power projects.</p>
<p>Subscribe to Mercom&#8217;s <a href="https://mercomindia.com/product/india-solar-tender-tracker/" target="_blank" rel="noopener">India Solar Tender Tracker</a> to stay on top of real-time tender activity.</p>
<div class="saboxplugin-wrap" itemtype="http://schema.org/Person" itemscope itemprop="author"><div class="saboxplugin-tab"><div class="saboxplugin-gravatar"></div><div class="saboxplugin-authorname"><a href="https://cms.mercomindia.com/author/arjun-joshi/" class="vcard author" rel="author"><span class="fn">Arjun Joshi</span></a></div><div class="saboxplugin-desc"><div itemprop="description"><div class="designboxt">
<p><img class="alignleft" style="border-radius: 50%;height: 50px;margin-top: -4px;border: 1px solid #00b451" src="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2022/04/Arjun-Joshi-1.png" width="50" /></p>
<p><strong style="text-decoration: underline">Arjun Joshi,</strong> Staff reporter at Mercom India<br />
<a href="https://mercomindia.com/author/arjun-joshi/" target="_blank" rel="noopener">More articles from Arjun Joshi.</a></p>
</div>
<div class="authorboxn">
<p><img class="alignleft" src="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2022/04/Arjun-Joshi-1.png" width="86" height="102" /><a href="https://mercomindia.com/author/arjun-joshi/" target="_blank" rel="noopener"><strong style="color: #00b451">Arjun Joshi</strong> </a>is a staff reporter at Mercom India. Before joining Mercom, he worked as a technical writer for enterprise resource software companies based in India and abroad. He holds a bachelor’s degree in Journalism, Psychology, and Optional English from Garden City University, Bangalore. <a href="https://mercomindia.com/author/arjun-joshi" target="_blank" rel="noopener">More articles from Arjun Joshi.</a></p>
<p style="height: 17px">
</div>
</div></div><div class="clearfix"></div></div></div>

MAHAGENCO Floats EPC Tender for 569 MW of Solar Power Projects


					<table id="amazon-polly-audio-table">
						<tr>
						<td id="amazon-polly-audio-tab">
							<div id="amazon-ai-player-label">Listen to this article</div>
							<div id="amazon-ai-player-container">
			<audio class="amazon-ai-player" id="amazon-ai-player" preload="none" controls   controlsList="nodownload" >
				<source type="audio/mpeg" src="https://cms.mercomindia.com/wp-content/uploads/2024/03/amazon_polly_64417.mp3?version=1710502809">
			</audio>
		</div>
							<div id="amazon-polly-subscribe-tab"></div>
							<div id="amazon-polly-by-tab"></div>
						</td>
						</tr>
					</table><p><a href="https://ellumesolar.com/" target="_blank" rel="noopener">Ellume Solar</a>, a solar engineering, procurement, and construction company, has received a letter of award from Maharashtra State Power Generation Company (<a href="https://mahagenco.in/" target="_blank" rel="noopener">MAHAGENCO</a>) to develop 100 MW grid-connected solar power projects in Aurangabad.</p>
<p>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).</p>
<p>Ellume Solar must submit the finalized locations to set up the project by March 23, 2024.</p>
<p>Ellume must also submit a performance bank guarantee of ₹500,000 (~$6,032)/ MW before signing the power purchase agreement.</p>
<p>The tender was <a href="https://www.mercomindia.com/bids-invited-for-600-mw-of-solar-projects-in-maharashtra" target="_blank" rel="noopener">floated</a> 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.</p>
<p>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.</p>
<p>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.</p>
<p>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.</p>
<p>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.</p>
<p>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.</p>
<p>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.</p>
<p>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.</p>
<p>In the meantime, the MERC advised MAHAGENCO and MSEDCL to submit a separate petition if they wish to pursue the 400 MW expansion.</p>
<p>Subscribe to Mercom’s <a href="https://mercomindia.com/product/india-solar-tender-tracker/" target="_blank" rel="noopener">India Solar Tender Tracker</a> to stay on top of tender activity in real time.</p>
<div class="saboxplugin-wrap" itemtype="http://schema.org/Person" itemscope itemprop="author"><div class="saboxplugin-tab"><div class="saboxplugin-gravatar"></div><div class="saboxplugin-authorname"><a href="https://cms.mercomindia.com/author/arjun-joshi/" class="vcard author" rel="author"><span class="fn">Arjun Joshi</span></a></div><div class="saboxplugin-desc"><div itemprop="description"><div class="designboxt">
<p><img class="alignleft" style="border-radius: 50%;height: 50px;margin-top: -4px;border: 1px solid #00b451" src="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2022/04/Arjun-Joshi-1.png" width="50" /></p>
<p><strong style="text-decoration: underline">Arjun Joshi,</strong> Staff reporter at Mercom India<br />
<a href="https://mercomindia.com/author/arjun-joshi/" target="_blank" rel="noopener">More articles from Arjun Joshi.</a></p>
</div>
<div class="authorboxn">
<p><img class="alignleft" src="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2022/04/Arjun-Joshi-1.png" width="86" height="102" /><a href="https://mercomindia.com/author/arjun-joshi/" target="_blank" rel="noopener"><strong style="color: #00b451">Arjun Joshi</strong> </a>is a staff reporter at Mercom India. Before joining Mercom, he worked as a technical writer for enterprise resource software companies based in India and abroad. He holds a bachelor’s degree in Journalism, Psychology, and Optional English from Garden City University, Bangalore. <a href="https://mercomindia.com/author/arjun-joshi" target="_blank" rel="noopener">More articles from Arjun Joshi.</a></p>
<p style="height: 17px">
</div>
</div></div><div class="clearfix"></div></div></div>

Ellume Receives Letter of Award for 100 MW Solar Projects in Maharashtra


					<table id="amazon-polly-audio-table">
						<tr>
						<td id="amazon-polly-audio-tab">
							<div id="amazon-ai-player-label">Listen to this article</div>
							<div id="amazon-ai-player-container">
			<audio class="amazon-ai-player" id="amazon-ai-player" preload="none" controls   controlsList="nodownload" >
				<source type="audio/mpeg" src="https://cms.mercomindia.com/wp-content/uploads/2024/03/amazon_polly_64391.mp3?version=1710742342">
			</audio>
		</div>
							<div id="amazon-polly-subscribe-tab"></div>
							<div id="amazon-polly-by-tab"></div>
						</td>
						</tr>
					</table><p>SJVN Green Energy (<a href="https://sjvn.nic.in/" target="_blank" rel="noopener">SJVN</a>), Megha Engineering &amp; Infrastructures (<a href="https://meil.in/" target="_blank" rel="noopener">MEIL</a>), and <a href="https://avaada.com/" target="_blank" rel="noopener">Avaada Energy</a> were amongst the winners of MSEB Solar Agro Power’s (MSAPL) auction to procure over 7 GW solar power under Component C of the Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan (PM KUSUM) program.</p>
<p>The projects tendered by MSAPL, a wholly-owned subsidiary of Maharashtra State Electricity Board <a href="https://www.msebindia.com/en/home/" target="_blank" rel="noopener">MSEB Holding Company</a>, will be developed under the second phase of the Mukhyamantri Saur Krushi Vahini Yojana program.</p>
<p>SJVN won 1,352 MW capacity by quoting a minimum tariff of ₹3.02 (~$0.0365)/kWh and a maximum tariff of ₹3.10 (~$0.0374)/kWh. Megha Engineering won 1,880 MW with tariffs in the range of ₹3.08 (~$0.0372)/kWh and ₹3.10 (~$0.0374)/kWh, whereas Avaada Energy won 1,132 MW at ₹3.10 (~$0.0374)/kWh.</p>
<p>Maharashtra State Power Generation Company (<a href="https://mahagenco.in/" target="_blank" rel="noopener">MAHAGENCO</a>) won 1,071 MW at a maximum tariff of ₹3.10 (~$0.0374)/kWh.</p>
<p>The other winners are <a href="https://www.nacofoorja.com/index.html" target="_blank" rel="noopener">NACOF Oorja</a> (990 MW), <a href="https://www.torrentpower.com/" target="_blank" rel="noopener">Torrent Power</a> (306 MW), Integrated Induction Power (<a href="https://www.iiplindia.in/" target="_blank" rel="noopener">IIPL</a>) (302 MW), <a href="https://www.ril.com/" target="_blank" rel="noopener">Reliance Industries</a> (179 MW), and <a href="https://www.sunstreamglobal.com/" target="_blank" rel="noopener">Sunstream Green Energy</a> (100 MW).</p>
<p>A total of 7,783 MW was awarded during the auction.</p>
<p>The tariff range and the capacities bid by the winners are as mentioned in the table.</p>
<p><img decoding="async" loading="lazy" class="aligncenter size-full wp-image-64392" src="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2024/03/MSKVY-2-Program-Solar-Auction-Winners-Table.png" alt="MSKVY 2 Program Solar Auction Winners Table" width="837" height="393" srcset="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2024/03/MSKVY-2-Program-Solar-Auction-Winners-Table.png 837w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2024/03/MSKVY-2-Program-Solar-Auction-Winners-Table-300x141.png 300w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2024/03/MSKVY-2-Program-Solar-Auction-Winners-Table-768x361.png 768w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2024/03/MSKVY-2-Program-Solar-Auction-Winners-Table-650x305.png 650w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2024/03/MSKVY-2-Program-Solar-Auction-Winners-Table-624x293.png 624w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2024/03/MSKVY-2-Program-Solar-Auction-Winners-Table-600x282.png 600w" sizes="(max-width: 837px) 100vw, 837px" /></p>
<p>SJVN plans to develop a total of 1,352 MW capacity with a total investment of ₹74.36 billion (~$897.51 million) at various locations in the Nashik, Solapur, Ahmednagar, and Pune districts of Maharashtra.</p>
<p>Avaada Group will install the 1,132 MW solar power projects across 192 locations in 10 districts.</p>
<p>Torrent Power announced that it would deploy 306 MW capacity across 48 locations across Nasik district for an estimated cost of ₹15.4 billion (~$185.87 million).</p>
<p>The other winners who secured capacities less than 100 MW each include companies as well as individual entities, cumulatively accounting for 471 MW of the auctioned capacity.</p>
<p>The winners comprised 20 companies and 29 individual entities.</p>
<p>The scope of work for the selected developers includes ownership, financing, development, design, engineering, procurement, construction, commissioning, operation, and maintenance of the project, including the evacuation infrastructure up to the delivery point.</p>
<p>The tender has mandated the use of domestically manufactured modules listed on the Approved List of Models and Manufacturers issued by the Ministry of New and Renewable Energy.</p>
<p>The modules must ensure a capacity utilization factor of 19%.</p>
<p>MSAPL has leased 1,686 acres of revenue land from the Maharashtra government under land lease agreements. The annual sub-lease rent for such revenue land will be ₹1 (~$0.012)/ hectare.</p>
<p>If bidders require private land, MSAPL has compiled a list of private land parcels available for lease on its portal. The base lease rent for such private lands will be ₹125,000 (~$1,503)/hectare/annum or 6% of the ready reckoner rate, whichever is higher, with a provision of 3% escalation annually.</p>
<p>If the developers intend to use any other land, they must lease or procure 100% of the required land for a period not less than the complete term of PPA on or before the scheduled commission date.</p>
<p>Recently, the Maharashtra State Electricity Distribution Company <a href="https://www.mercomindia.com/maharashtra-invites-bids-grid-connected-solar-projects" target="_blank" rel="noopener">invited</a> bids for the procurement of power on a long-term basis through a competitive bidding process from 5,000 MW grid-connected solar photovoltaic power projects.</p>
<p>Subscribe to Mercom’s <a href="https://www.mercomindia.com/product/india-solar-tender-tracker" target="_blank" rel="noopener">India Solar Tender Tracker</a> to stay on top of real-time tender activity.</p>
<div class="saboxplugin-wrap" itemtype="http://schema.org/Person" itemscope itemprop="author"><div class="saboxplugin-tab"><div class="saboxplugin-gravatar"></div><div class="saboxplugin-authorname"><a href="https://cms.mercomindia.com/author/satish-shetty/" class="vcard author" rel="author"><span class="fn">Satish Shetty</span></a></div><div class="saboxplugin-desc"><div itemprop="description"><div class="designboxt">
<p><img class="alignleft" style="border-radius: 50%;height: 50px;margin-top: -4px;border: 1px solid #00b451" src="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2022/04/Satish-pic-1.jpg" width="50" /></p>
<p><strong style="text-decoration: underline">Satish Shetty,</strong> Associate Editor at Mercom India<br />
<a href="https://mercomindia.com/author/satish-shetty/" target="_blank" rel="noopener">More articles from Satish Shetty.</a></p>
</div>
<div class="authorboxn"><img class="alignleft" src="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2022/04/Satish-pic-1.jpg" width="102" height="102" /><a href="https://mercomindia.com/author/satish-shetty/" target="_blank" rel="noopener"><strong style="color: #00b451">Satish Shetty</strong></a> is an Associate Editor with Mercom India. Prior to Mercom, Satish was a multimedia news producer at Reuters, where he gained experience in digital news media. Satish has his Bachelor of Arts (B.A.) degree in Broadcast Journalism from Limkokwing University of Creative Technology, Malaysia.<br />
<a href="https://mercomindia.com/author/satish-shetty/" rel="noopener noreferrer">More articles from Satish Shetty.</a></div>
</div></div><div class="clearfix"></div></div></div>

SJVN, MEIL, Avaada Among Winners in Maharashtra’s 7.78 GW Solar KUSUM Tender


					<table id="amazon-polly-audio-table">
						<tr>
						<td id="amazon-polly-audio-tab">
							<div id="amazon-ai-player-label">Listen to this article</div>
							<div id="amazon-ai-player-container">
			<audio class="amazon-ai-player" id="amazon-ai-player" preload="none" controls   controlsList="nodownload" >
				<source type="audio/mpeg" src="https://cms.mercomindia.com/wp-content/uploads/2024/01/amazon_polly_62093.mp3?version=1704978252">
			</audio>
		</div>
							<div id="amazon-polly-subscribe-tab"></div>
							<div id="amazon-polly-by-tab"></div>
						</td>
						</tr>
					</table><p>MSEB Solar Agro Power (MSAPL), a wholly-owned subsidiary of Maharashtra State Electricity Board <a href="https://www.msebindia.com/en/home/" target="_blank" rel="noopener">MSEB Holding Company</a>, has invited bids to procure 366 MW of solar power under Component C of the Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan (PM KUSUM) program for feeder-level solarization in Solapur.</p>
<p>The projects would be developed under the second phase of the Mukhyamantri Saur Krushi Vahini Yojana program.</p>
<p>The last day to submit the bids is February 27, 2024. The bid opening date will be informed later.</p>
<p>Bidders must furnish a processing fee of ₹2,500 (~$30)/ MW and a document cost of ₹25,000 (~$300).</p>
<p>They must also submit an earnest money deposit of ₹100,000 (~$1,203)/ MW.</p>
<p>Selected bidders must submit a performance bank guarantee of ₹500,000(~$6,015)/ MW.</p>
<p>The scope of work includes ownership, financing, development, design, engineering, procurement, construction, commissioning, operation, and maintenance of the project, including the evacuation infrastructure up to the delivery point.</p>
<p>If Maharashtra State Electricity Distribution Company (MSEDCL) is able to identify, before the bid due date, any new substations in the region of Solapur that will be eligible for interconnection at 11 kV / 22 kV / 33 kV voltage level of substations, MSEDCL may decide to purchase an additional 91 MW of solar power.</p>
<p>Bidders must have commissioned or have an operational solar capacity of at least 250 MW if the quoted capacity is more than 200 MW. If the quoted capacity is less than 200 MW, the requirement will be 100 MW.</p>
<p>They must have a net worth of ₹10 million (~$120,302) for the last three financial years. The net worth of the last three financial years should not be negative.</p>
<p>Bidders must have a minimum annual turnover of ₹2.5 million (~$30,076)/MW during the previous financial year 2022-2023. They must possess internal resource generation capability in the form of profit before depreciation interest and taxes for an amount that shall be calculated at the rate of ₹1 million (~$12,030)/MW.</p>
<p>Foreign investment funds can qualify if the asset under management is worth at least ₹10 billion (~$120.3 million) and if they have minimum investible funds of at least ₹5 billion (~$60.15 million).</p>
<p>MSAPL has leased 1,686 acres of revenue land from the Maharashtra government under land lease agreements. The annual sub-lease rent for such revenue land will be ₹1 (~$0.012)/ hectare.</p>
<p>If bidders require private land, MSAPL has compiled a list of private land parcels that are available for lease on its portal. The base lease rent for such private lands will be ₹125,000 (~$1,503)/ hectare/ annum or 6% of the ready reckoner rate, whichever is higher, with a provision of 3% escalation annually.</p>
<p>If the developers intend to use any other land, they must lease or procure 100% of the required land for a period not less than the complete term of PPA on or before the scheduled commission date.</p>
<p>The tender has mandated the use of domestically manufactured modules listed on the Approved List of Models and Manufacturers issued by the Ministry of New and Renewable Energy.</p>
<p>The modules must ensure a capacity utilization factor of 19%.</p>
<p>In September, MSEB Agro Solar Power <a href="https://www.mercomindia.com/maharashtra-tenders-procuring-977-mw-solar-power/" target="_blank" rel="noopener">floated</a> five tenders to procure 977.72 MW of solar power under MSKVY in Maharashtra.</p>
<p>Subscribe to Mercom’s <a href="https://mercomindia.com/product/india-solar-tender-tracker/" target="_blank" rel="noopener">India Solar Tender Tracker</a> to stay on top of real-time tender activity.</p>
<div class="saboxplugin-wrap" itemtype="http://schema.org/Person" itemscope itemprop="author"><div class="saboxplugin-tab"><div class="saboxplugin-gravatar"></div><div class="saboxplugin-authorname"><a href="https://cms.mercomindia.com/author/arjun-joshi/" class="vcard author" rel="author"><span class="fn">Arjun Joshi</span></a></div><div class="saboxplugin-desc"><div itemprop="description"><div class="designboxt">
<p><img class="alignleft" style="border-radius: 50%;height: 50px;margin-top: -4px;border: 1px solid #00b451" src="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2022/04/Arjun-Joshi-1.png" width="50" /></p>
<p><strong style="text-decoration: underline">Arjun Joshi,</strong> Staff reporter at Mercom India<br />
<a href="https://mercomindia.com/author/arjun-joshi/" target="_blank" rel="noopener">More articles from Arjun Joshi.</a></p>
</div>
<div class="authorboxn">
<p><img class="alignleft" src="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2022/04/Arjun-Joshi-1.png" width="86" height="102" /><a href="https://mercomindia.com/author/arjun-joshi/" target="_blank" rel="noopener"><strong style="color: #00b451">Arjun Joshi</strong> </a>is a staff reporter at Mercom India. Before joining Mercom, he worked as a technical writer for enterprise resource software companies based in India and abroad. He holds a bachelor’s degree in Journalism, Psychology, and Optional English from Garden City University, Bangalore. <a href="https://mercomindia.com/author/arjun-joshi" target="_blank" rel="noopener">More articles from Arjun Joshi.</a></p>
<p style="height: 17px">
</div>
</div></div><div class="clearfix"></div></div></div>

Maharashtra Floats Tender to Procure 366 MW of Solar Power

<p>The Maharashtra Electricity Regulatory Commission (<a href="https://www.merc.gov.in/" target="_blank" rel="noopener noreferrer">MERC</a>) has directed the Maharashtra State Electricity Distribution Company Limited (<a href="https://www.mahadiscom.in/" target="_blank" rel="noopener noreferrer">MSEDCL</a>) to file a modified request for selection (RfS) for floating open tenders under the Mukhyamantri Saur Krishi Vahini Yojana (MSKVY) program.</p>
<p><strong>Background</strong></p>
<p>The state distribution company had filed a petition with the state Commission seeking approval to float open tenders with a ceiling tariff of ₹3.30 (~$0.04)/kWh. It had also requested the Commission to consider the procurement of power through this process to fulfill its renewable purchase obligation (RPO) targets.</p>
<p>At present, MSEDCL has 4.05 GW of contracted capacity, while 1.11 GW is yet to be signed. To meet its RPO targets, MSEDCL has to procure 5 GW of solar power in the next two years. Out of this, 3 GW has been planned through the MSKVY program.</p>
<p>Considering the benefits of decentralized generation under the program, MSEDCL has floated tenders for solar power procurement through competitive bidding under the program in the past two years.</p>
<p style="text-align: center;"><a href="https://mercomindia.com/wp-content/uploads/2020/10/MERC-updated.png"><img decoding="async" loading="lazy" class="alignnone wp-image-22358 size-full" src="https://mercomindia.com/wp-content/uploads/2020/10/MERC-updated.png" alt="MERC Updated" width="501" height="272" srcset="https://cms.mercomindia.com/wp-content/uploads/2020/10/MERC-updated.png 501w, https://cms.mercomindia.com/wp-content/uploads/2020/10/MERC-updated-300x163.png 300w" sizes="(max-width: 501px) 100vw, 501px" /></a></p>
<p>The tenders floated by MSEDCL have largely been undersubscribed and have exhibited the same pattern for the last two years. Out of the total tendered capacity of 6.5 GW under the program, bids for only 1.87 GW of capacity were received. The power purchase agreement (PPA) for only 250 MW solar capacity has been executed so far, and 283 MW is currently under process.</p>
<p>Considering this, MSEDCL proposed adopting an open tender policy by publishing distribution sub-station wise solar evacuation capacity in the agriculture-dominated districts.</p>
<p>In its submission, the Maharashtra Energy Development Agency (<a href="https://www.mahaurja.com/meda/" target="_blank" rel="noopener noreferrer">MEDA</a>) added that the individual solar projects installed under the program should be first registered with MEDA.</p>
<p><strong>Commission&#8217;s Analysis </strong></p>
<p>The Commission said that to expedite the bidding process, MSEDCL had proposed the methodology of open tenders with monthly frequency.</p>
<p>It noted that the DISCOM had submitted ceiling rates for the bidding process as per the methodology presented by it.</p>
<p>The state regulator said that according to the proposal by MSEDCL, the initial tender document would form the base for all future bidding processes until the targeted capacity is fulfilled. Such an approach will take several months.</p>
<p><em>&#8220;Due to the proposed methodology of continuous bidding until the fulfillment of the target capacity, there is a possibility that bidders will quote only the ceiling tariff, which will be contrary to the intent of competitive bidding. To avoid this, MSEDCL should adopt the approach of other agencies like Solar Energy Corporation of India (SECI), wherein it initially invites the expression of interest (EoI) to assess the scale of bids. If the bids received are less than the anticipated capacity, then bids are called for less capacity (usually 80%) of the EoI received,&#8221;</em> MERC added.</p>
<p>MERC added that the DISCOM had proposed the option of providing land to bidders only if three months of continuous bidding process did not offer a satisfactory response. However, the DISCOM already has enough low response experience in the last two years, so instead of waiting for three months, if the land is available, MSEDCL should include it upfront from day one.</p>
<p>Further, the Commission noted that MSEDCL should include a formula for arriving at the per-unit impact of the &#8216;change in law&#8217; compensation to be recovered over PPA&#8217;s tenure.</p>
<p>Given these facts, the Commission directed MSEDCL to make necessary changes to the RfS document to address the issues and submit a fresh petition for the Commission&#8217;s approval. It also asked MSEDCL to submit operational details of already commissioned projects under the MSKVY program and whether they have faced any operational difficulty.</p>
<p>In May this year, MERC <a href="https://mercomindia.com/merc-tariff-solar-agricultural-feeder-program/" target="_blank" rel="noopener noreferrer">approved</a> the tariff ranging between ₹3.28 (~$0.043)/kWh to ₹3.30 (~$0.044)/kWh for the procurement of power from 283 MW of solar projects by MSEDCL. The DISCOM had filed a petition to adopt tariffs for the long-term (25 years) procurement of power from 283 MW of projects under the MSKVY program.</p>
<p>Before that, the state reissued a tender for 1,350 MW of solar projects to be <a href="https://mercomindia.com/maharashtra-retenders-solar-tariff-cap/" target="_blank" rel="noopener noreferrer">developed</a> across 30 districts under the same program. The ceiling tariff has been raised to ₹3.30 (~$0.04)/kWh, up from ₹3.15 ($0.044)/kWh previously.</p>
<p>Regulatory updates in the renewable energy sector can be hard to keep track of. Subscribe to Mercom&#8217;s real-time <a href="https://mercomindia.com/product/mercoms-renewable-energy-regulatory-updates/" target="_blank" rel="noopener noreferrer">Regulatory Updates</a>.</p>
<div class="saboxplugin-wrap" itemtype="http://schema.org/Person" itemscope itemprop="author"><div class="saboxplugin-tab"><div class="saboxplugin-gravatar"></div><div class="saboxplugin-authorname"><a href="https://cms.mercomindia.com/author/rakesh-ranjan-parashar/" class="vcard author" rel="author"><span class="fn">Rakesh Ranjan</span></a></div><div class="saboxplugin-desc"><div itemprop="description"><div class="designboxt">
<p><img class="alignleft" style="border-radius: 50%;height: 50px;margin-top: -4px;border: 1px solid #00b451" src="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2022/02/Rakesh-Headshot-crop-2.jpg" width="50" /></p>
<p><strong style="text-decoration: underline">Rakesh Ranjan,</strong> Staff reporter at Mercom India<br />
<a href="https://mercomindia.com/author/rakesh-ranjan-parashar/" target="_blank" rel="noopener">More articles from Rakesh Ranjan.</a></p>
</div>
<div class="authorboxn">
<p><img class="alignleft" src="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2022/02/Rakesh-Headshot-crop-2.jpg" width="77" height="102" /><a href="https://mercomindia.com/author/rakesh-ranjan-parashar/" target="_blank" rel="noopener"><strong style="color: #00b451">Rakesh Ranjan</strong></a> is a staff reporter at Mercom India. Prior to joining Mercom, he worked in many roles as a business correspondent, assistant editor, senior content writer, and sub-editor with bcfocus.com, CIOReview/Silicon India, Verbinden Communication, and Bangalore Bias. Rakesh holds a Bachelor’s degree in English from Indira Gandhi National Open University (IGNOU). <a href="https://mercomindia.com/author/rakesh-ranjan-parashar/" rel="noopener noreferrer">More articles from Rakesh Ranjan.</a></p>
</div>
</div></div><div class="clearfix"></div></div></div>

mskvy

Get the most relevant India solar and clean energy news.

RECENT POSTS