Tamil Nadu Invites Bids to Buy 420 MW of Solar Power Under KUSUM Program

The last date to submit the bids is March 8, 2023


Tamil Nadu Generation and Distribution Corporation (TANGEDCO) has invited bids to procure 420 MW of solar power under Component A of the Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan (PM-KUSUM) program.

The last date to submit the bids is March 8, 2023. Bids will be opened the following day.

Bidders will have to furnish ₹5,000 (~$60.63)/MW of the quoted capacity as a bid processing fee. They must deposit ₹100,000 (~$1,213)/MW as an earnest money deposit.

TANGEDCO has set a ceiling tariff of ₹3.30 (~$0.040)/kWh.

Under Component A of the PM-KUSUM program, the Central government aims to set up 10,000 MW of grid-connected solar power projects of up to 2 MW of individual project sizes. The minimum individual project capacity has been set at 1 MW.

TANGEDCO will enter into a power purchase agreement with the successful bidders for 25 years from the commercial operation date of the projects.

The project must be commissioned within 12 months from the date of issuing the letter of award.

The solar projects must be installed within a five-kilometer radius of the substations to avoid the high cost of transmission lines and reduce transmission losses.

Bidders can participate as individuals or groups of farmers, cooperatives, panchayats, farmer-producer organizations, or water user organizations setting up the project on their lands.

If bidders cannot arrange the capital, they may set up the projects through a developer. In such a case, the landowner will get the lease rent as mutually agreed upon.

Individual farmers, farmer groups, cooperatives, panchayats, farmer producer organizations, water user associations, and farmers setting up the project on their lands are optional to meet the financial eligibility requirement.

If a developer sets up the project on leased land, the net worth of the bidder should not be less than ₹10 million (~$121,251))/MW of the quoted capacity in any of the last three financial years.

The bidder should have sufficient cash flow, internal accruals, or bank references to manage the fund requirements for the project.

The solar power project of up to 2 MW may be connected at the substation’s 11kV/22kV/33kV side. The selected solar power generator will be responsible for laying of dedicated 11 kV line from the project to the substation, construction of the bay, and related switchgear at the substation where the project is connected to the grid and metering is done.

TANGEDCO has stated that the modules to be used for the project must be from the Approved List of Models and Manufacturers (ALMM) issued by the Ministry of New and Renewable Energy.

In 2021, the Tamil Nadu Electricity Regulatory Commission approved TANGEDCO’s proposal to procure 500 MW of solar power from projects with a capacity of 1 MW to 2 MW under Component A of the PM-KUSUM program.

According to Mercom’s India Solar Tender Tracker, TANGEDCO has floated tenders for 3 GW solar power projects.