Bihar Plans To Develop Canal Solar, Issues Tender

The Bihar State Power Generation Company Limited (BSPGCL) has issued a tender to boost the growth of solar power plants along selected canals (canal solar) in the state. The state nodal department has identified five locations in the state where these plants will be installed. The last date for submission of the bids is August 23, 2024. 

The tender documents issued by BSPGCL said that these solar projects will be developed through RESCO mode. The state government has planned to add 20 MW of new solar energy capacities in the state through this tender. The green power procured through these canal solar projects will be supplied to the two discoms of Bihar–NBPDCL and SBPDCL through a 25-year Power Purchase Agreement (PPA) with the successful bidders.

“Proposal of Grid Connected Solar PV Power Project (at canal banks) for cumulative capacity of 20 MW (AC) under RESCO Mode at 5 different locations in the State of Bihar will be carried out through open e-bidding. The interested Bidders are required to participate in the Request for Proposal (RFP) for installation of Grid Connected Solar PV Power Project (at canal banks) in RESCO Mode. The successful bidder shall be responsible for entire operation & maintenance of the plant throughout the PPA period,” the BSPGCL tender said. 

The tender also mandated the use of mono-PERC based solar modules besides other compliances.  “The selection of solar PV modules technology would be technology agnostic to suit the solar project where humidity levels are high, and moisture ingress is more in rainy season. The modules with suitable quality back sheets, glass to glass packed modules or any modules with suitable technology shall be used. The structures, modules used shall have proven design and demonstrated performance. Mono PERC modules manufactured by the latest ALMM of MNRE with or without trackers may be installed,” the tender document read.

Background

Several states like Gujarat have tried investing in canal solar to utilize the peripheries of these water bodies to generate green power. However, these canal solar projects often pose new challenges for the developers. It is because the sturdy mounting structures for these projects require additional capital investment for the developers, increasing their project cost. In addition to this, the average discovered tariffs in such projects had been often higher than the conventional ground mounted solar projects or floating solar projects. In Gujarat, experiments have seen the average tariff from these projects in the range of Rs 4 to Rs 4.5 per unit whereas other formats of solar projects had been more economical for the discoms to procure green power.

However, the land locked state of Bihar is also posed with the challenge of dearth of large land for utility-scale projects and absence of favourable wind conditions for wind projects in the state.