Indian State Of Tamil Nadu Issues 500 MW Solar Power Tender

One of the leading Indian states in terms of installed solar power capacity, Tamil Nadu, has announced another large tender.

State-owned power utility Tamil Nadu Generation and Distribution Corporation (TANGEDCO) has issued a tender for setting up 500 MW of solar PV power projects. The tender was floated just weeks after the Tamil Nadu Electricity Regulatory Commission had given an approval for the same.

Tamil Nadu Generation and Distribution Corporation (TANGEDCO) had approached the commission to let it auction this capacity as it would not be in a possible to meet the assigned target to acquire 5% of electricity from solar power projects for financial year 2017-18.

According to government estimates, an installed capacity base of 2.5 GW will be required to meet the 5% solar RPO target in 2017-18. TANGEDCO, however, expects that only 1.6 GW solar power capacity would be operational by that time, thus leaving a shortfall of 900 MW.

A tariff bid ceiling of Rs 5.10/kWh has been set for the purpose of competitive auction. TANGEDCO expects that the winning bids would be much lower, possibly closer to the national record low of Rs 4.35/kWh (US¢6.50/kWh).

However, participating developers may be apprehensive about the utilities record on procurement of solar power. Developers of some operational renewable energy projects had complained to the Ministry of New & Renewable Energy that the state utility had asked them to curtail generation due to lack of sufficient transmission capacity.

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