The Tamil Nadu Generation and Distribution Corporation
(TANGEDCO) tendered 500 MW (AC) of solar in a bid to fulfill its renewable
purchase obligation (RPO). Interested solar developers have been requested to submit
bids on or before February 10, 2017. The TANGEDCO has set an upper tariff
limit of Rs. 4.50 (0.066)/kWh and plans to offtake the energy generated from
these projects through long-term energy purchase agreements (EPA) for 25-years.
TANGEDCO has reduced the upper tariff limit to Rs. 4.50 (~$0.066)/kWh
from Rs. 5.10 (~$0.075)/kWh (issued in October), a drop of 12% in just 3
months. With module
prices dropping by about 30% in the last 12 months and 10% since August,
the tariff benchmark may still be viable. However, the risk premium in Tamil
Nadu is high; the state has a history of late payments and solar curtailment
which may scare off many developers.
The project commissioning timeline has been extended in this
tender to 12 months compared 10 months in the previous tender.
The scope of work includes, establishment, maintenance and
operation of solar power projects of minimum 1 MW (AC) and above (up-to 500 MW
(AC)) in a single location and supplying the generated solar power to TANGEDCO
under long-term EPA at the tariff finalized through reverse bidding.
The Tamil Nadu Electricity Regulatory Commission (TNERC) has
RPO targets of 2.5 percent for the financial year (FY) 2016-17 and 5 percent
for FY 2017-18. To meet its RPO targets, ~1,500 MW of solar power is required
for FY 2016-17 and ~3,200 MW for FY 2017-18.
reported that TANGEDCO had tendered 500 MW
in October, but received tepid
response with bids to develop only 117 MW.
Tamil Nadu is expected
to join the Ujwal DISCOM (distribution company) Assurance Yojana (UDAY) next
week, a government program designed to bring about the financial turnaround of
DISCOMs in the state.