Tata Power, Azure Win MSEDCL Hybrid Tender With Rs 2.62 Bid

Queensland to Get its Largest Hybrid Renewable Park from Octopus Investments Australia

Tata Power (TP Saurya  Limited) and Azure Power have edged out RenEw Power to win the Hybrid MSEDCL tender for wind and solar combined. The winning bidders came in with bids at Rs 2.62, a paisa lower than RenEw Power’s Rs 2.63 bid. The tariff is less than 10 percent higher than the one discovered in the recently concluded solar auction, making it a very competitive pitch indeed. Only SECI managed options have attracted lower tariffs than this level, for hybrid tenders.

Strong Response Continues

With this, the strong return of bidders at attractive prices continues for discom auctions, MSEDCL (Maharashtra State Electricity Distribution Company Limited ) being the biggest beneficiary so far.While Tata Power has won a capacity of 300 MW, Azure Power has pocketed the remaining 200 MW of the 500 MW tender.

Fine Pricing 

Pricing was always expected to be tight, with a strong response adding up to over 1 GW for the tender. Being a Hybrid tender, it was considered a tougher one , and we had reported on how industry insiders predicted a price in the range of Rs 2.71 to Rs 2.75 for the same. In the event, they were not too far off, as the top three bidders have all come in a little below that.

MSEDCL Conditions

MSEDCL had also pushed to make the tender attractive by lowering both EMD requirements as well as performance bank guarantees. In the event, both the winning firms have turned out to be experienced Indian developers.

MSEDCL will now enter into a power purchase agreement (PPA) with the winners for 25 years from the commercial operation date (SCOD)of the projects. This tender also comes in with the condition of sourcing only from firs in the Approved List of Manufacturers and Modules (ALMM), ruling out Chinese imports as far as modules go, since the list for foreign vendors has still not been declared in any case.

The minimum project size of a single intrastate hybrid power project should be 25 MW, with at least 10 MW project at one site. It should be 50 MW for interstate projects at one site to be interconnected to a single delivery point.