TANGEDCO has invited tenders for setting up 1,000 MW of solar power projects in the year 2013. Tender specific document issued by Tamil Nadu Generation and Distribution Corporation Ltd (TANGEDCO).
The financial bids for the tender submitted were only for less than 500 MW. The lowest financial bid has come in at Rs 5.97 per kilowatt hour. However, TANGEDCO will decide on what will be the benchmark rate for which PPA will be signed with the successful developer. The state has adopted the ‘L1′ method of bidding process, wherein bidders are asked to match the lowest bid.
After opening the financial bids wherein, Mohan Breweries has offered lowest tariff of Rs. 5.97 per unit, state’s power utility, Tamil Nadu Generation and Distribution Corporation Ltd, has fixed Rs 6.48 per kwh (unit) as a negotiable price for its tender to generate solar power in the energy-deficient state. Almost all successful solar power projects in the country so far have been priced at least Rs 7 per unit.
As per the rules of the tender, TANGEDCO has adopted the “L1″ method, where bidders are asked to match the lowest bid. The tender also provided for a 5% price escalation clause for the first 10 years and the tariff for 10th year will be applicable for the balance life of the solar project. As L1 process failed to attract a viable price, this prompted TANGEDCO to fix Rs 6.48 per kwh as the negotiable price.
It is to be now seen how many developers would be willing to match the benchmark price of Rs. 6.48 per unit.
Letter of Intent (LoI) will be issued to successful bidders very shortly by TANGEDCO.
APTANSCO has decided the benchmark price of Rs.6.49 per unit and has requested all the bidders to provide their consent for setting up the projects at the benchmarked price within 30 days (i.e., 3rd June 2013). Accordingly APTRANSCO has requested the interested bidders to extend their bid validity including the Bank Guarantee till 30th September 2013.
Rajasthan’s tender for purchase of solar power from 100 MW of capacity has attracted 23 qualified bidders with total bid capacity of 185 MW. The highest rate quoted is Rs 8.25 per kwh (unit). 17 of the bidders have quoted rates less than Rs 8 per unit and 12 of them Rs 7.50 per unit or below. Four bidders have offered to sell solar-generated electricity at rates of Rs 7 per unit or below. The lowest bid (L1) has been received from Essel Mining, part of Aditya Birla Group, which intends to develop a 10 MW Solar PV Project and supply power to Rajasthan Renewable Energy Corporation at a rate of Rs. 6.45 per unit.
As per the tender documents, the bidders will be asked to match the L1 price.