The scope of work includes establishment, operation and maintenance of grid-connected solar PV projects and to supply power generated through projects to TANGEDCO
The Tamil Nadu Generation and Distribution Corporation (TANGEDCO), an electrical power generation and distribution PSU, has issued a tender for 500 MW of grid-connected solar photovoltaic (PV) projects.
TANGEDCO has put the upper tariff ceiling of Rs 3 per kWh for the tender. The deadline for submitting the bids is December 27, 2018.
According to the tender, the minimum capacity for a single bidder is 5 MW and the maximum capacity is 50 MW, at a single location. However, a bidder can also bid for the entire 500 MW capacity.
Generators to sign long-term PPA
The successful bidders have to sign power purchase agreements (PPAs) for 25 years with TANGEDCO. The scope of work includes establishment, operation and maintenance of the grid-connected solar PV projects and to supply the power generated through the project to the PSU, under the long-term PPA and at tariffs decided through the process of reverse bidding.
The power distribution company floated the tender after getting the approval of Tamil Nadu Electricity Regulatory Commission (TNERC). Recently, the Commission accepted the modifications request by TANGEDCO regarding PPA and RfS documents, by incorporating clauses related to change in law, security of payments and relaxation from compliance of foreign direct investment (FDI) rules by international bidders.
The request was approved by TNERC in view of 25 year-PPA that TANGEDCO will enter into with the generators of solar and wind power, for tenders of 1,500 MW each of solar and wind.
The TNERC also put a cap of Rs 3.97 per kWh on the pooled tariff for purchasing power that TANGEDCO will pay to the power generators of non-conventional sources of energy. The tariffs decided through the reverse bidding will be economically feasible and viable for the PSU.
