Gridco, the state-owned bulk power buyer cum trader, will float tenders for 300 Mw capacity. Bids for the residual 250 Mw will be invited by another state-controlled entity- Green Energy Development Corporation Ltd (GEDCOL) for developing solar parks on cluster mode.
“The auctions would be conducted on the reverse bidding mode. The chosen developer will have the discretion to select the location”, an official source said.
At the maiden solar power auctions, Gridco had invited bids for 200 Mw capacity. The bids were oversubscribed by more than four times with Gridco receiving proposals for 845 Mw capacity. Aditya Birla Renewables emerged as the L1 bidder at auctions, quoting a tariff of Rs 2.79 per unit. The discovered price was competitive since auctions in Odisha were held under the shadow of the announcement of safeguards duty on solar modules imports by the Government of India. Also, the quantum of solar radiation received by the state does not compare favourably with Rajasthan, Gujarat or Madhya Pradesh.
Gridco is headed towards signing a long-term power purchase agreement (PPA) spanning 25 years with Aditya Birla Renewables. The company will install five solar power plants of 15 Mw apiece at disparate locations. Odisha Industrial Infrastructure Development Corporation Ltd (Idco) will make available 375 acres land for the solar projects.
Though 125 Mw capacity was meant to be allocated to the L2 and L3 bidders, Gridco decided to scrap the bids as they did not soften their price quotes. Three players were tied up at the L2 level with a price quote of Rs 3.19 per unit- Sukhbir Agro Energy Ltd, city based Gupta Power Infrastructure Ltd and Eden Renewable Varenne Pvt Ltd, bagging 25 Mw, 20 Mw and 50 Mw capacities respectively. Acme Solar finished as the L3 bidder, quoting Rs 3.20 for 50 Mw unit.
Gridco is constrained to commit long-term power purchase agreements (PPAs) where tariff exceeds Rs three per unit. Gridco has been tapping more competitive sources of sourcing solar power. The power trader in August had signed a power sales agreement with the Solar Electrification Corporation of India (SECI). The pact is to buy 300 Mw from SECI’s upcoming auctions at an agreed price of Rs 2.57 per cent. The power is tipped to be fed to the state grid from 2019-20 end. According to the terms of the agreement with SECI, Gridco can draw this solar power without forking out transmission or wheeling charges.