MSEDCL Gets one Bid for 5 MW in Response to 1350 MW Solar Tender

MSEDCL has revealed that it received only one bid for 5 MW in response to its tender for procurement of 1350 MW of solar power from 30 Circles.

The Maharashtra State Electricity Distribution Company (MSEDCL) had recently petitioned with the Maharashtra Electricity Regulatory Commission (MERC) seeking approval for adoption of tariff discovered for long term procurement of 5 MW solar power under ‘Mukhyamantri Saur Krishi Vahini Yojana’ connected to the distribution network for meeting its solar Renewable Purchase Obligations (RPO). In the petition, the Discom has revealed that bid for one district (Baramati) with bidding capacity of 5 MW, was the only one it has received in response to its tender issued on August 31, 2019, for procurement of 1350 MW of solar power from 2 to 10 MW capacity projects to be connected to distribution network in 30 Circles.

The Discom also stated that the last date of submission of bids for the tender was September 21, 2019, which was initially extended to October 4, 2019, and later to October 5, 2019. However, only a single bid for one district (Baramati) was received with a bidding capacity of 5 MW from Kiran Renewables.

In its petition, MSEDCL requested for the commissions’ approval for the adoption of the tariff of Rs 3.14/kWh and the signing of a 25-year PPA with the successful bidder for 5 MW solar power as discovered through competitive bidding conducted by MSEDCL. And for MERC to accord approval to make this power eligible for meeting the Solar RPO requirement of MSEDCL.

After viewing all the submissions made by the petitioner, the commission stated that it “accords approval for procurement of 5 MW Solar Power at a rate of Rs. 3.14 per unit discovered through Competitive bidding conducted by Maharashtra State Electricity Distribution Company Ltd. for 25 Years under Mukhyamantri Saur Krishi Vahini Yojana.”

And the “solar power procured from this project shall be counted towards fulfilment of MSEDCL’s solar RPO for the respective periods.”

Furthermore, the commission also stated that for encouraging more participation from prospective bidders, MSEDCL may review the bidding conditions under Mukhyamantri Saur Krishi Vahini Yojana and fix the appropriate ceiling rate as per its own due diligence.

The abysmal response is the culmination of a poor year for solar growth in India, stumped by the pressure for low tariffs, loss of credibility among state discoms to pay on time and stick to contracted values, and finally, a tiredness with processes at state level to get projects moving. With almost no end in sight for the biggest issues, the financial condition of discoms, everyone will look to the budget now for a decisive move to solve that problem.

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