TEDA Tenders 50 MW of Grid-Connected Solar Projects to be Developed in Tamil Nadu

The Tamil Nadu Energy Development Agency (TEDA) has tendered a 50 MW grid-connected solar photovoltaic (PV) project to be developed in the state.

The bid-submission deadline is June 21, 2018.

The project will be developed on a “Build, Own, Operate, Transfer” basis. The scope of work includes the design, engineering, supply, construction, installation, testing, commissioning, as well as developing the associated transmission system. The successful bidder will also be responsible for 25-years of operation and maintenance of the project.

TEDA has fixed ₹3.47 (~$0.0516)/kWh as the upper tariff ceiling for this tender. TEDA will enter 25-year power purchase agreement (PPA) with the developer.

The solar power project will be designed for inter-connection with the state transmission utility substation through dedicated transmission line at a voltage level of 11 kV and above. The responsibility of getting connectivity with the transmission system owned by Tamil Nadu Generation and Distribution Corporation (TANGEDCO) will lie with the TEDA.

The project will be developed on TEDA owned land in Kayathar, Kovilapatti Taluk, located in Thoothukudi district of Tamil Nadu. This project is intended to be a demonstration project for better utilization of land with installation of high-end technologies. It will be a platform for the developer to showcase their capabilities and expertise in utilizing the latest technologies.

In accordance with the guidelines introduced by the Ministry of New and Renewable Energy (MNRE), the project can avail grant from MNRE for preparing detailed project report (DPR) for conducting surveys etc. Thereafter, the project can apply for eligible subsidy of up to ₹2 million (~$29,742.1)/MW or 30 percent of the project cost including grid connectivity cost, whichever is lower, subject to the approval of MNRE.

In case of shortfall in performance, the project developer will pay to TEDA the compensation for the actual shortfall in terms of units at the prevailing forbearance price. TEDA will purchase excess generation, if any, at average pooled purchase cost (APPC) or the accepted unit cost by TEDA or the applicable preferential tariff, whichever is less.

According to TEDA, the project must be commissioned within 10 months from the date of signing of PPA. For delay up to five months, TEDA will encash the Performance Bank Guarantee (PBG) on per day basis and proportionate to the capacity not commissioned, with 100 percent encashment for five months delay beyond stipulated commissioning period of 10 months.

In case the commissioning of project is delayed beyond five months, the successful bidder will, in addition to 100 percent encashment of PBG, pay TEDA a sum of ₹10,000 (~$148.71)/MW per day of delay for the delay in such remaining capacity which is not commissioned.

The maximum time-period allowed for commissioning of the full project capacity with encashment of PBG and payment of liquidated damages will be nine months from the scheduled date of commissioning.

In case, the commissioning of the project is delayed beyond nine months from the scheduled date of commissioning, the PPA capacity will be reduced to the project capacity commissioned and the PPA for the balance capacity will stand terminated.

In March 2018, Mercom had also reported on TANGEDCO’s plans to tender 3 GW of renewable energy capacity soon. The capacity will consist of 1.5 GW of solar projects and 1.5 GW of wind power projects.

Meanwhile, a report by the Institute for Energy Economics and Financial Analysis (IEEFA) noted that the southern state of Tamil Nadu could become a model for low-cost renewable energy generation in India, with approximately 18.5 percent (one-fifth) of the India’s total renewable energy generation between the years 2016 and 2017.

Tamil Nadu is already one of the top solar states in India with over 1.7 GW of installed solar capacity (as of March 31, 2018), according to Mercom’s India Solar Project Tracker. The planned tender will further strengthen the state’s strong project development pipeline of approximately 2.4 GW.

In April 2018, approximately 1.3 GW of new solar projects were tendered, over 1.6 GW was retendered, and only 40 MW of solar was auctioned across the country.

Image credit: By NREL [Public domain], via Wikimedia Commons