MSEDCL Tenders 500 MW of Wind Projects to Meet Non-Solar RPO

December 22, 2017


The Maharashtra State Electricity Distribution Company Limited (MSEDCL) has tendered 500 MW of grid-connected wind projects to meet its non-solar Renewable Purchase Obligation (RPO). The bid-submission deadline is January 20, 2018.

The MSEDCL has fixed ₹3/kWh ($0.047) as the upper tariff ceiling for this tender. For intra-state projects, the individual project size will be at least 5 MW at one site with the minimum bid capacity of 25 MW. For inter-state projects, the individual project size will be at least 50 MW at one site with the minimum bid capacity of 50 MW.

The scope of work includes design, supply, procurement and construction, commissioning of the projects. All the required approvals, permits and clearances will be the responsibility of the successful bidder.

The successful bidders will also bear the responsibility of connecting the projects with the transmission facilities. However, they will not be entitled to deemed generation in case of any delay in grant of connectivity.

The Power Purchase Agreement (PPA) will be signed within one month of issue of Letter of Award (LoA). The MSEDCL will enter the PPA with successful bidders for a period of 25 years from the commercial operation date of the grid-connected solar projects. The project developer must report the financial tie-ups within seven months of the signing the PPA.

In case the power generated is more than the maximum capacity utilization factor (CUF) specified, the solar project developer will be free to sell it to any other entity if the procurer refuses to buy the surplus. The projects are expected to be commissioned within a period of 18 months from the date of execution of the PPA.

Recently, Maharashtra Electricity Regulatory Commission (MERC) approved MSEDCL’s petition to procure the power it needs to meet its RPO. In the financial year (FY) 2016-17, MSEDCL reported a non-solar RPO shortfall of 1,822 Million Units (MUs). In the first quarter of FY 2017-18, MSEDCL reported a solar RPO shortfall of 970 MUs. The RPO requirement from non-solar sources in FY 2017-18 is 10.5 percent.

Mercom had recently reported that the MSEDCL has tendered 1,000 MW of grid-connected solar photovoltaic (PV) projects to meet its RPO.