Madhya Pradesh Raises Capacity of Solar Bids Under KUSUM Program to 300 MW

MPUVNL had initially invited bids to set up 100 MW of solar power projects


The Madhya Pradesh Urja Vikas Nigam Limited (MPUVNL) has increased the capacity of bids for solar power projects under Component A of the Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan (PM-KUSUM) program from 100 MW to 300 MW.

In December 2020, MPUVNL had invited bids to set up 100 MW of grid-connected solar power projects under Component A of the KUSUM program. The power generated from the projects will be sold to the Madhya Pradesh Power Management Company Limited (MPPMCL).

There is no change in the other provisions of the request for selection.

Under Component A of the program, the government aims to set up 10 GW of decentralized ground-mounted grid-connected solar projects of individual project size up to 2 MW.

The decentralized grid-connected projects will range between 500 kW and 2 MW. The minimum capacity utilization factor is set at 15% annually during the power purchase agreement (PPA) period.

As per the tender documents, an applicant will not be allowed to apply for more than one solar project for a particular 33/11 kV substation. Selected solar power generators are expected to develop the necessary land and related infrastructure for the projects and enable connectivity from the 33/11 kV substation.

The DISCOM will sign a PPA with the solar power generator within two months from the date a letter of approval (LoA) is issued. The selected power producer should commission the solar power project within nine months from the date of the LoA.

According to Mercom India Solar Tender Tracker, 621 MW of solar projects have been issued for decentralized solar projects under Component-A of the KUSUM program from agencies like Bangalore Electricity Supply Company, Haryana Renewable Energy Development Agency, Meghalaya Power Distribution Corporation Limited, and MPUVNL.

The Tamil Nadu Generation and Distribution Corporation Limited recently floated a tender to set up 500 MW of solar projects under the same program.

In November 2020, the Ministry of New and Renewable Energy ramped up the solar capacity target for the KUSUM program from 25.75 GW to 30.8 GW by 2022. It also reduced central financial assistance under the program to ₹340.35 billion (~$4.61 billion) from ₹344.22 billion (~$4.66 billion). The revised target is to be met in 2020-21.

Earlier, Mercom had written about the amendments the government should make to the KUSUM program to ensure broader participation and success.