MSEDCL Tenders 1 GW of Solar to Meet its RPO


The Maharashtra State Electricity Distribution Company Limited (MSEDCL) has tendered 1,000 MW of grid-connected solar photovoltaic (PV) projects in order to help it meet its Renewable Purchase Obligation (RPO).

The bid-submission deadline is January 20, 2018. A pre-bid meeting will be held on December 29, 2017.

The scope of work includes project design, engineering, manufacture, supply, installation, testing, and commissioning of the grid-connected solar projects, and developing the transmission and distribution network up to the delivery point.

MSEDCL has fixed ₹3 (~$0.047)/kWh as the upper tariff ceiling for this tender.

The minimum project capacity will be 2 MW at a single location. The bidders are required to obtain necessary clearances and permits as required for setting up the solar projects.

The successful bidders will be responsible for connecting their projects to the transmission utility. In cases where the power generated is more than the maximum Capacity Utilization Factor (CUF) specified, the solar project developer will be free to sell the excess power to any other entity if the procurer refuses to buy the surplus.

The successful bidders will not be entitled to deemed generation if there is a delay in the grant of connectivity.

The Power Purchase Agreement (PPA) will be signed within one month of issue of the Letter of Award (LoA). MSEDCL will enter into a PPA with the successful bidders for a period of 25 years. The project developer must report the details of financing closure for the projects within seven months of signing the PPA.

The projects must be commissioned within a period of 13 months from the date of execution of the PPA. However, projects with a capacity of 250 MW and above, if they are being developed outside of a solar park, can be commissioned within a period of 15 months from the date of execution of the PPA.

Recently, the Maharashtra Electricity Regulatory Commission (MERC) approved MSEDCL’s petition to procure the power it needs to meet its RPO. In the first quarter of financial year (FY) 2017-18, MSEDCL reported a solar RPO shortfall of 532 Million Units (MUs). Previously, in FY 2016-17, MSEDCL had reported a solar RPO shortfall of 693 MUs.