Haryana Floats Tender for 300 MW of Solar Projects with a Tariff Ceiling of ₹3/kWh

Projects to be developed under two categories


In order to meet its renewable purchase obligation, the Haryana Power Purchase Centre (HPPC) has issued a tender for 300 MW of grid-connected solar projects to be developed in the state. The bid-submission deadline is January 28, 2019.

An upper tariff ceiling of ₹3 (~$0.043)/kWh has been set for this tender. The HPPC has mandated that the capacity will be developed under two categories. Under Category I, 240 MW of cumulative capacity will be developed with a minimum capacity of 3 MW and a maximum of 240 MW. Under Category II, 60 MW of cumulative capacity will be developed with a minimum capacity of 1 MW and a maximum of 60 MW. A single bidder can bid for the entire capacity tendered.

The HPPC will enter 25-year power purchase agreements (PPAs) with the developers. The solar power generator will pay a penalty in case of a shortfall in generation. The amount of such penalty will be a minimum of 25 percent of the cost of this shortfall in energy terms.

In case of excess generation, the solar power generator will be free to sell it to any other entity if HPPC refuses to procure the produced power. In case HPPC purchases the excess generation, the same will be done at 75 percent of the PPA tariff.

The entire cost of transmission including cost of construction of line, bay, metering and protection system, along with the transmission charges and losses up to the substations will be borne by the project developer.

Recently, the Haryana Electricity Regulatory Commission (HERC) issued an order approving the deviations to the terms of competitive bidding, the conditions of request for proposal (RfP) and the draft PPA for 300 MW of solar projects by HPPC to meet its solar RPO.

HPPC has issued the tender at a very opportune time. In October 2018, the Haryana Renewable Energy Development Agency (HAREDA) had issued guidelines for MW-scale ground mounted and rooftop projects, for captive consumption or third party sale, under the Haryana Solar Power Policy 2016. According to the guidelines, “Wheeling charges, cross-subsidy charges, transmission and distribution charges and additional surcharges will be completely waived for third party sale or open access consumers of energy from ground mounted or rooftop solar projects commissioned during the control period. The waivers are applicable until the state achieves its goal of 500 MW of installed capacity.”