Tamil Nadu has received an enthusiastic response – with 3,700 MW of technical bids – to its 1,500 MW tender. It means that the tender issued in May 2017 was over-subscribed by 146%.
Tamil Nadu Generation and Distribution Corporation (TANGEDCO) had launched the tender with a maximum tariff limit of 4.00 INR ($0.062) per kWh (see TANGEDCO Tenders 1.5 GW PV Capacity). Developers were expected to bid for a minimum of 1 MW capacity and a maximum of up to 500 MW.
It should come as a confidence booster for TANGEDCO that had suffered with two consecutive 500 MW tenders receiving not a very warm response from developers previously (see Another 500 MW Solar Tender In Tamil Nadu).
Indian solar tariffs touched a new low with the recent Bhadla Solar Park Phase III reporting lowest winning tariff of 2.44 INR ($0.037) per kWh (see ACME Wins 200 MW At 2.44 INR Record). This has changed the 'dynamics of the sector' according to Mercom Capital, which talked to a TANGEDCO official. "There is a race to develop projects and this proved beneficial for TANGEDCO," he reportedly said.
According to Mercom Capital, the price bids are expected to open on June 30, 2017.