Uttar Pradesh Approves ReNew Power’s Bid to Develop 100 MW of Floating Solar Projects
The bid is part of SECI’s auction for 150 MW of grid-connected floating solar power projects at Rihand Dam
April 18, 2019
The Uttar Pradesh Electricity Regulatory Commission (UPERC) has approved the opening and finalization of bids for the development of 100 MW of floating solar photovoltaic (PV) projects in the state.
The Uttar Pradesh Jal Vidyut Nigam Limited (UPJUVNL) had petitioned the UPERC seeking consent for the process undertaken by the Solar Energy Corporation of India (SECI) for 150 MW (50 MW x 3) of grid-connected floating solar power projects at Rihand Dam (also known as Govind Ballabh Pant Sagar Reservoir), located in Sonbhadra district of Uttar Pradesh.
SECI had been roped in by the Uttar Pradesh Power Corporation Limited (UPPCL) to help set up 150 MW solar PV projects at Rihand Dam. It was agreed that SECI would be paid a trading margin of ₹0.07 (~0.001)/kWh. The project was divided into three packages of 50 MW each (A, B, and C).
In November 2018, Shapoorji Pallonji emerged as the auction winner by quoting a tariff of ₹3.29 (~$0.046)/kWh for part B (50 MW). Part A and C were to be auctioned later.
ReNew Power was the other bidder that had participated in the reverse bidding. It had submitted bids for the entire capacity tendered. However, after negotiations, SECI and ReNew Power agreed that if the company met the L1 tariff of ₹3.29 (~$0.046)/kWh, it would be awarded the remaining capacities (Part A and C).
Then, the board of directors at SECI approved the tariff of ₹3.29 (~$0.046)/kWh for the remaining two parts of 50 MW each, subject to approval by the UPERC. After this development, the UPJUVNL had approached the UPERC for the consideration of a single bid for Part A and C.
The state commission has issued a warning to SECI on the development, underlining that it must have been approached before the opening of bids for Part A and C.
But keeping in mind the larger interest of the state and the sector, the commission has allowed for the consideration and finalization of the bids received for Part A and C from ReNew Power.
In its order, the UPERC stated that this approval must not be considered as approval for tariff adoption. For the adoption of the tariff, a separate petition needs to be filed before the UPERC.
Saumy is a senior staff reporter with MercomIndia.com covering business and energy news since 2016. Prior to Mercom, Saumy was a copy editor at Thomson Reuters. Saumy earned his Bachelors Degree in Journalism & Mass Communication from the Manipal Institute of Communication at Manipal University. More articles from Saumy Prateek.