The Telangana State Southern Power Distribution Corporation Limited (TSSPDCL) has come up with a ‘Request for Selection’ for 500MW capacity solar power plants. These are to be setup through competitive bidding over September, and expected to be operational within a period of 10 months.
All the 10 districts of Telangana have been reeling under power shortages, especially during the past few months. Even during the monsoon, the power distribution companies (discoms) have been imposing three to six hour power cuts both in urban and rural areas. With the demand from the agriculture sector not being met adequately, farmers have been attacking electricity sub-stations in various parts of the state for failing to provide uninterrupted power supply.
The RfS document released by TSSPDCL can be downloaded here. Solar power developers will setup the plants in Build-Own-Operate mode and would be responsible for getting all the clearances. For sale of the solar power generated, they will have to sign PPA with the DISCOMS for a period of 25 years. The bidding process shall be carried out for interconnection substations in 9 districts listed in the documents.
Project developers are allowed to quote for tariff in two methods. They can either quote for a single tariff for the entire PPA term, or they can use the second method which is a bit more complex. Here they can quote a tariff for the first year, and a fixed annual escalation rate which would be applicable until the tenth year. The tariff for post tenth year would be constant and equal to the tariff in the tenth year. Interestingly, while the document labels the program as technology agnostic, only PV options have been enumerated. It is further explained that “Only commercially established and operational technologies can be used (this is) to minimize the technology risk and to achieve the timely commissioning of the Projects “
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