MSEDCL issues a tender for 1.3 GW of solar power

Maharashtra State Electricity Distribution Company Ltd (MSEDCL) has issued a tender to procure 1,300 MW of solar power through competitive bidding processfollowed by e-reverse auction.These solar power projects will be connected at distribution network (11/22 KV) in 29 districts under the Mukhyamantri Saur Krishi Vahini Yojana (MSKVY). A pre-bid meeting for the same will be held on April 30, 2021 and last date for submission of technical and financial bids is May 17, 2021. A ceiling tariff of Rs 3.05/kWh has been set for these projects. The discom will sign power purchase agreements (PPAs) with selected bidders for a period of 25 years.The selected solar power developers will be responsible for design, finance, procurement ofland, engineering, procurement, construction, operation, and maintenance of the project.

Recently, the Maharashtra Electricity Regulatory Commission (MERC) issued an order allowing MSEDCL to float open tenders through a continuous bidding process for solar projects under the MSKVY. The order follows a petition by MSEDCL reporting a poor response to 6.5 GW of its solar tenders that were issued in the past three years. It had received bids for 1,873 MW and was able to allocate only 527 MW. The petition also attributed the poor response to the high ceiling tariff of Rs 3.30 per kWh and the low availability of cheap land. Given that the state has not met its renewable purchase obligations, MSEDCL petitioned the MERC to obtain permission for floating open tenders under the MSKVY.

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