MSEDCL Discovers Price of Rs 2.90/kWh In 500 MW Solar Tender

Highlights :

  • SolarArise, SJVN Green Energy, and Tata Power Renewable Energy (TPREL) emerged the lowest bidders for the bid quantity, with SolarArise bidding the lowest at Rs 2.90/kWh for 100 MW 
MSEDCL Discovers Price of Rs 2.90/kWh In 500 MW Solar Tender Tracing trajectory of renewables

The Maharashtra State Electricity Distribution Company (MSEDCL) has discovered a best price of Rs 2.90/kWh for 100 MW out of the 500 MW it auctioned to secure 500 MW of long-term power from grid-connected intrastate solar projects. SolarArise was the lowest bidder,  while state owned SJVN Green Energy, and Tata Power subsidiary Tata Power Renewable Energy (TPREL) made up the remaining quantity. Both were awarded 200 MW each at their bid price of Rs 2.95 and Rs 2.97 respectively per kWh.

The bid prices reflect the pressure on margins post the imposition of BCD this year, and for now, it is expected that solar auction bids would stay in the range of Rs 2.75 to Rs 3.00 due to the same reason. SECI and NTPC led auctions are likely to get the lower end of the bids, with state entities like MSEDCL and the others receiving slightly higher bids.

Tata Power Renewable Energy was only given 200 MW out of its bid quantity of 300 MW after quoting Rs 2.97/kWh using the bucket-filling process.

Tender Inviting Agency Maharashtra State Electricity
Distribution Company
Technolgy Type / Tranch Solar/ T-XI
Tendered Capacity 500 MW
Date of e-Reverse Auction 02.12.2022
Opening L1 Tariff (INR/ kWh) 2.9
Name of Bider Bid Capacity
Awarded Capacity
Final Tariff
SolarArise 100 100 2.9
SJVN Green Energy 200 200 2.95
Tata Power Renewable 300 200 2.97
Sprng Solar Energy 160 2.98

MSEDCL floated the tender in October of this year (2022). The successful bidders were required by the terms of the tender to use only commercially established and operational technologies for the aforementioned projects as specified by MSEDCL, to reduce the risk associated with the technology and guarantee timely commissioning. 

MSEDCL will sign a PPA for 25 years beginning with the anticipated start of commercial operation with SolarArise, SJVN Green Energy, and TPREL. The three winners will make sure that the project’s solar modules are warranted for peak output wattage, which should not be less than 90% at the end of 10 years and 80% at the end of 25 years from the date of commercial operation of the project.

The claimed capacity utilization factor (CUF), which should not be less than 19% over a year, will be maintained by the auction’s winners. Additionally, until the end of 10 years from the start of commercial operation, the developers must maintain generation to reach annual CUF within +10% and 15% of the specified value.

Recently, Tata Power Renewable Energy (TPREL) bagged the 255 MW Wind-Solar Hybrid auction from Tata Power Delhi Distribution Limited (TPDDL) at a price of Rs 3.00/kWh. The supplies are meant for the Delhi market, where TPDDL is one of the 3 discoms operating, besides the two BSES discoms.

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