Chennai: After getting a poor response for its 500 MW solar power procurement bid, Tangedco has got a fresh nod from the TNERC for floating another 500 MW solar bid with Rs 4.5 per unit as an upper limit.
The revised upper limit was fixed after the price was discovered in the previous tender. The last tender saw the only participation of 20 bidders for the quantum of 122 MW and only 20 MW made by two bidders at '4.5 per unit has been finalised.
Tangedco, in its petition, cited shortfall of 995 MW solar power capacity to meet the renewable purchase obligation of five per cent for 2017-18 when it would be requiring a total capacity of 3275 MW. At present, Tangedco has an installed solar capacity of 1358 MW.
The utility has signed two power purchasing agreement with the NLC for 130 MW and 500 MW to procure power at Rs 5.10 per unit and '4.56 per unit. Besides, it also signed a PPA with NHPC for procuring 50 MW solar power. Considering the upcoming projects, Tangedco requires approximately 995 MW to meet its RPO (Renewable Purchase Obligation requirement for the year 2017-18.
To meet the RPO for 2017-18 and to avoid the purchase of solar certificate in the power exchange in case of failure of compliance with the target, Tangedco proposed to procure solar power of 500 MW from solar
developers through competitive bidding with '4.5 per unit as an upper limit.
Pointing out that the ministry of new and renewable sources of energy in letter dated July 10, 2015, has fixed a solar RPO target of 8 percent to be achieved by 2019 requiring the distribution companies to absorb additional solar power, TNERC said that the utility has sought its approval for procurement of solar power for a quantum of 500 MW is to meet the solar renewable purchase obligation.
“The reverse bidding process with a ceiling price at the preferential tariff rate of Rs 4.50 per unit may fetch power at optimum prices and is a better option for the licensee,” the commission said.
