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Telangana to call bids for 1,000-Mw solar PV projects

State government has set a target to develop 5,000 MW of solar energy projects in the next five years

BS Reporter  |  Hyderabad 

The Telangana government is in the process of inviting bids for setting up 1,000 Mw of solar photo-voltaic (PV) power generation farms through a reverse bidding process, said Aravind Kumar, principal secretary (energy).

“During the last development of 505 Mw solar projects, the price discovery was Rs 645 per unit. Keeping this as a base price, we are planning to invite the tenders for 1,000 Mw, through a reverse bidding process, within a month. These projects, with a cumulative capacity of 1,505 Mw, will be commissioned by March 2016,” he said.


Reverse auction is a type of auction in which sellers bid for the prices at which they are willing to sell their goods and services. However, in a regular auction, a seller puts up an item and buyers place bids till the close of the auction. At the end, the item goes to the highest bidder.

Speaking to Business Standard on the sidelines of the 'Solar energy investment and technology forum' organised by UBM India here today, Kumar said the Telangana government had set a target to develop 5,000 Mw of solar energy projects in the next five years.

"This is in addition to the target set by the state government to generate 20,000 Mw of over the next five years, from the present 4,400 Mw," he said, adding Telangana as such was an ideal location to harness solar energy.

On how the state energy department was gearing up to meet the shortage of power during summer, Kumar said while the state was already receiving 500 Mw from Kerala, 800 Mw of naphtha-based power was being arranged for short-term buying.

“A shortfall of around 1,000 Mw is expected for the next three months. We, however, are confident that we will tide over this crisis (shortage of power in summer),” he said, adding the state government was also trying to source power from other state grids.

Stating that the state government was laying more emphasis on renewable energy resources, Kumar said his department was also considering encouraging development of wind energy projects.

"The net energy gains from wind power projects are very low. We, however, are receiving many proposals from companies evincing interest to set up wind energy projects in the state. We are currently evaluating these proposals," he added.

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