MSEDCL's 500MW Solar Tender Awarded to SJVN, Tata Power & Others

Maharashtra State Electricity Distribution Company's (MSEDCL) had announced an auction to purchase power from 500MW solar tender of grid-connected intrastate solar projects (Phase-VII). SJVN Green Energy, Juniper Green Energy, Tata Power Renewable Energy, Sukhbir Agro Energy, and Avaada Energy were announced as the winners. The tender was released by MSEDCL in June of this year.

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With quotes of Rs. 2.90)/kWh, SJVN and Juniper respectively won 200 MW and 75 MW of capacity. With quotes of Rs. 2.91/kWh, Tata Power and Sukhbir Agro Energy secured contracts for 150 MW and 50 MW, respectively. Avaada requested 300 MW at Rs. 2.91/kWh, but the bucket filling approach resulted in only 25 MW being granted.

In June of this year, the state distribution firm (DISCOM) announced a tender to purchase 500MW of solar energy from grid-connected intrastate projects on a long-term basis. Compared to the tariff found in the previous MSEDCL solar auction, those found in this auction were relatively higher. Prices are a reflection of the developers' worries about the uncertainty in the solar sector brought on by GST and supply chain issues.

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Winners of the MSEDCL (Maharashtra State Electricity Distribution) auction to get power from 500MW solar tender of solar projects (Phase VI) on a long-term basis included ACME Solar Holdings and ReNew Solar Power. 300 MW of capacity was awarded to ACME Solar Holdings at a quote of Rs. 2.42/kWh. ReNew Solar Power was awarded 200 MW at a quote of Rs. 2.43/kWh. 

 In the case of proposed or new solar power projects, MSEDCL will enter into a power purchase agreement (PPA) with the bidders selected for the purchase of solar power for 25 years from the planned date of commercial operation, or for 25 years from the date the PPA was executed in the case of existing solar power projects.

According to the PPA terms, the solar power generator will be in charge of the project's design, financing, acquisition of land, engineering, acquisition, construction, and operation and maintenance. According to MSEDCL, the announced capacity utilisation factor (CUF) should never fall below 19 percent during a year. The generator must continue to produce to achieve yearly CUF within + 10% and 15% of the declared value for ten years following the start of commercial operation. Until the conclusion of the 25-year PPA term, the annual CUF must be at least 17% and within +10 percent and 20 percent of the declared amount of the annual CUF.