GRIDCO plans to renegotiate tariffs discovered in its 200 MW auction

The Grid Corporation of Odisha (GRIDCO) has made a tariff renegotiation request to all bidders except to match the L1 price (Rs 2.79 per kWh) for the 200 MW Odisha grid-connected solar PV project. As per GRIDCO, the renegotiation will be done due to the wide differential between solar tariff prices (over Re 0.40 per kWh) quoted by L1 bidder and other participants.

Reportedly, GRIDCO is currently purchasing power from SECI at a tariff ranging between Rs 2.57 per kWh and Rs 2.81 per kWh. Thus, the bids above Rs 3 per kWh will not be feasible for the corporation.

GRIDCO had invited bids for developing 200 MW of solar in the state in March, 2018. Following this the project was awarded to five companies in July, 2018. These were: Aditya Birla Renewables Limited (75 MW, Rs 2.79 per kWh), Sukhbir Agro Energy Limited (25 MW, Rs 3.19 per kWh), Gupta Power Infrastructure Limited (20 MW, Rs 3.19 per kWh), Eden Renewable Varenne Private Limited (50 MW, Rs 3.19 per kWh) and ACME Solar Holdings Limited (30 MW, Rs 3.20 per kWh).

The L1 bidder, Aditya Birla Renewables, has already been issued a letter of Intent (LoI) by GRIDCO to proceed with the project development. If the remaining bidders do not agree to reduce their price quotes to the L1 price, GRIDCO is likely to go for a retender for the remaining capacity.

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