Indian MSEDCL's 500 MW solar auction was oversubscribed by 3.5 GW
Post date: 09/07/2021 - 07:41
ACME Solar Holdings and Renew Solar Power were declared the winners in the Maharashtra State Electricity Distribution Company Limited’s (MSEDCL) 500 MW PV auction. According to Mercom India, ACME Solar Holdings won a capacity of 300 MW quoting $0.0325 /kWh and Renew Solar Power won 200 MW quoting $0.0326/kWh.
»The tender was oversubscribed by 3.5 GW«, says the company. The tender has been floated in May to procure 500 MW of power from interstate or intrastate solar projects on a long-term basis. The main reasons for such a response by the bidders are »the absence of ceiling tariff this time«, furthermore lower earnest money deposit and lower performance bank guarantee, says the consultancy, citing a MSEDCL official. Earlier, MSEDCL’s tender for the long-term procurement of power from 500 MW of intra-state grid-connected solar power projects was undersubscribed.
MSEDCL will enter into a power purchase agreement (PPA) with the selected bidders to purchase solar power for 25 years from the scheduled commercial operation date in the case of proposed or new solar projects. For existing projects, the time frame would be 25 years from the date of execution of the PPA.
According to Mercom’s India Solar Tender Tracker, MSEDCL has so far floated tenders for 11.6 GW of solar projects.