TANGEDCO Tenders 500 MW of Wind to Meet RPO

June 19, 2017


The Tamil Nadu Generation and Distribution Corporation (TANGEDCO) tendered 500 MW of wind. The bid-submission deadline is July 18, 2017. The TANGEDCO will sign 25-year power purchase agreements (PPAs) with the successful bidders.

The TANGEDCO tendered the capacity to meet its renewable purchase obligation (RPO). The Tamil Nadu Electricity Regulatory Commission (TNERC) has a fixed RPO at 9 percent for financial year 2017-18, and the TANGEDCO would have fallen short by 500 MW.

The TANGEDCO has regulated that each bidder submit bids for a minimum of 25 MW capacity comprising projects of a minimum of 5 MW each at a single location. Considering the low wind tariff quoted in the Solar Energy Corporation of India (SECI) wind auction, Rs.3.46 (~$0.054)/kWh is the upper tariff ceiling for this tender.

The scope of work includes, establishing, maintaining, and operating the project for a 25-year period, and supplying power to TANGEDCO from the project. The Capacity Utilization Factor (CUF) will be between 20 percent to 27.15 percent calculated on yearly basis. In case the availability is more than the maximum specified CUF of 27.15 percent, the TANGEDCO will purchase the excess power at 75 percent of the PPA tariff.

The wind power project will be designed for interconnection with a TANGEDCO substation through a dedicated transmission line at voltage levels of 110 kV and above. The entire cost of transmission from the project up to the TANGEDCO substation including cost of construction of the line and losses will be borne by the developer.

The TANGEDCO has regulated that if two bidders bid for the same location, the first preference will be given to the lowest bidder (L1). The project completion timeframe is 15 months from the date of PPA signing and part commissioning of a project will be accepted if half of the capacity bid for is complete. Part commissioning will not be applicable to projects having capacity of 10 MW or less.

The Tamil Nadu State has a total installed wind generation capacity of 7,850 MW as of March 31, 2017.

Mercom has reported three other wind tenders in the month of June 2017. SECI tendered 1,000 MW of Interstate Transmission System (ISTS)-connected wind power projects under Tranche-II. The Gujarat Urja Vikas Nigam Limited (GUVNL) has tendered 500 MW of wind projects, and recently the NTPC tendered 250 MW of wind projects.

Sampath KrishnaSampath has been part of the Mercom India research and news team since the company’s inception. He currently oversees all data and research relating to news published on the MercomIndia.com platform. Sampath received his Bachelor’s of Commerce Degree from Kuvempu University and Post Graduate Diploma in Management, from Indira Gandhi National Open University. More articles from Sampath Krishna.