Tangedco floats bid to procure 420 MW solar power under PM-KUSUM scheme

CHENNAI: Tamil Nadu Generation and Distribution Corporation (TANGEDCO) has floated a tender to set up 420 MW of solar power projects under Component A of the Pradhan Mantri Kisan Urja Surakshaevam Utthaan Mahabhiyan (PM-KUSUM) program.

According to Tangedco sources, it has floated the bids without any tariff ceilings. "In the previous bid last year, there was a tariff ceiling of Rs 3.30 per unit. Even though we have removed the clause from this bid, we expect the tariff to be quoted will be much lesser, " sources added. Sources said that the response for the previous tender was much less and it got proposals for only three Mega Watt.

Individual farmers, groups of farmers, cooperatives, panchayats, farmer producer organisations, and water user associations are eligible to establish solar power projects with capacities ranging from a minimum of 1 MW to a maximum of 2 MW at a single location. Additionally, renewable project developers can set up these projects on behalf of farmers, referred to as renewable power generators (RPGs).

The projects are expected to facilitate Tangedco's procurement of solar power through power purchase agreements with a contractual period of 25 years. Under Component A of the PM-KUSUM program, the Central government aims to set up 10,000 MW of grid-connected solar power projects of up to 2 MW of individual project sizes. The minimum individual project capacity has been set at one MW. The decentralised solar energy and other renewable energy generation plants of capacity up to 2MW, which could be connected directly to existing substations and transmission lines of Tangedco, thus saving in transmission system requirement apart from reduction of transmission and distribution losses.

As per the scheme, Tangedco would be eligible to get a performance-based incentive at Rs 0.40 per unit purchased or Rs 6.6 lakh per MW of capacity installed whichever is less for five years from the commercial date of operation.