RUMSL’s 550 MW Solar Auction Won by Avaada Energy and O2 Power
The tender had received a huge response from the bidders, with 18 bidders being shortlisted for the tender
July 12, 2021
Avaada Energy and O2 Power were declared winners in the Rewa Ultra Mega Solar Limited’s (RUMSL) auction for 550 MW of solar projects at the Agar Solar Park in Madhya Pradesh. Of this, capacity, Unit 1 Agar comprises 200 MW and Unit 2 Susner comprises 350 MW.
Avaada Energy won a capacity of 200 MW, quoting ₹2.459 (~$0.033)/kWh, and O2 Power won a capacity of 350 MW, quoting ₹2.444 (~$0.032)/kWh.
RUMSL is a joint venture between the Solar Energy Corporation of India and Madhya Pradesh Urja Vikas Nigam Limited.
Speaking to Mercom, one of the developers commented, “We have factored the Basic Customs Duty (BCD) in the bid. We plan to import solar cells and assemble them in India, so we will be able to comply with the Approved List of Models and Manufacturers (ALMM) order. The BCD will be 25% with this strategy. The RUMSL tender was an attractive proposition for everyone, as it had very limited risks, with land and evacuation infrastructure being available for the project. Additionally, the counterparty also has a good credit rating.”
The tender had received an enthusiastic response from the bidders, and a total of 18 bidders were shortlisted for the tender.
RUMSL had tendered a total of 1,500 MW of grid-connected solar projects to be developed across the three solar parks in the state in 2018. However, due to impending central and state elections, the tenders were delayed, the state authorities had earlier informed Mercom.
RUMSL then reissued the tender in January last year. The first tender was floated for developing 450 MW of grid-connected solar PV projects at Shajapur Solar Park. The second tender was floated for 550 MW of solar projects at the Agar Solar Park, and the third tender was for 500 MW of solar projects at the Neemuch Solar Park. Later, the tender underwent several bid submission deadline extensions. The World Bank will finance the entire 1,500 MW capacity.
In January last year, RUMSL had also invited proposals from interested consultants for setting up solar parks in the state of Madhya Pradesh. The International Bank for Reconstruction and Development will provide technical assistance for the projects through the Indian Renewable Energy Development Agency. The proposed solar parks are in four clusters/districts; cluster 1 (Sagar, Damoh, and Chhattarpur), cluster 2 (Morena), cluster 3 (Ratlam, Neemuch, and Mandsaur), and cluster 4 (Rewa and Satna).
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