Tata Power unit eyes solar power projects in Maharashtra
Tata Power Renewable Energy may invest up to Rs2,000 crore in these solar power projects in Maharashtra
Mumbai: Tata Power Renewable Energy Ltd (TPREL) is planning to bid for setting up two solar power projects in Maharashtra totalling 400 megawatts (MW), two people in the know said.
The company, a wholly owned subsidiary of Tata Power Co. Ltd, plans to bid for two separate projects of 150MW and 250MW. “TPREL may invest up to Rs2,000 crore in these projects. Bid strategy and other investment and commercial terms are still being worked out,” the first person cited above said on condition of anonymity.
TPREL, which builds and operates wind and solar power projects, is Tata Power’s primary investment vehicle for clean and renewable energy.
In December, the Maharashtra State Electricity Distribution Co. Ltd (MSEDCL) invited bids for 1 gigawatt (GW) of grid-connected solar power projects to meet its obligation to buy renewable energy.
MSEDCL supplies power to 1.93 crore consumers across the state. But the tender found no takers as potential bidders feared the central government would implement a recommendation from the Directorate General of Safeguards to impose a 70% duty on solar panels imported from China and Malaysia, which would push up their costs.
This month, MSEDCL re-introduced the tender, inserting a clause that allows winning bidders to revise tariffs and recover any safeguard duty that might be introduced later.
The bid information sheet seen by Mint has set a tariff ceiling of Rs3 per unit, which is locked in for 25 years. The bidder will have to ensure grid connectivity and get clearances.
The minimum project capacity is 5MW for intra-state and 50MW for inter-state projects. The last date for submission of technical bids is 27 April. Financial bids open on 7 May.
Mudit Jain, senior manager at renewable energy consultant Bridge to India said while the state has not indicated where it wants the projects set up, existing projects in Maharashtra are focused in the Marathwada, Vidarbha, Wardha and Osmanabad regions, where solar irradiance is the highest. Maharashtra currently has 430MW of installed solar capacity,
Editor's Picks »
- Markets yet to warm up to KEC International’s record order book
- Indraprastha Gas and Mahanagar Gas shares are low on fuel
- Overhang of capacity constraints finally lifts for ACC, Ambuja Cements
- Stock market traders fall for the ‘buy rural’ narrative, once again
- Continuing volume momentum puts Indian ports in a good position