GRIDCO Wary Of Signing PPAs For PV Auction

• GRIDCO is yet to take a call on whether to sign long-term PPAs with the winners of its 200 MW solar power tender
• Difference between L1 bid of 2.79 INR ($0.0406) and L2, L3, L4 bid of 3.19 INR ($0.0464) per kWh each, is the problem area for GRIDCO
• Local business daily Business Standard reports the agency may offer an additional 100 MW to L1 bidder but final decision hasn't yet been taken
• Another big tender of 2 GW capacity by NTPC is on hold as developers have been given time to factor in safeguard duty and submit revised bids by August 13, 2018

A 200 MW solar power tender launched by the Grid Corporation of Odisha (GRIDCO) in April 2018 received 845 MW of technical bids from 14 bidders. The auction results showed Aditya Birla Renewables offered an L1 price of 2.79 INR ($0.0406) per kWh for 75 MW capacity (see 200 MW Odisha Tender Lowest Bid At 2.79 INR/kWh).

Following the footsteps of Solar Energy Corporation of India (SECI), GRIDCO is now not sure if it wants to go ahead and sign long-term PPAs with the rest of the winners, according to an article in Indian daily Business Standard. Local media suggested that SECI had cancelled its 3 GW auction as it is willing to sign the PPA with only the L1 bidder, which is ACME Solar that offered 2.44 INR ($0.035) per kWh (see SECI Cancels 3 GW Auction, Partially).

Odisha has an installed solar power capacity of 93 MW, but the state sources about 75 MW from outside. GRIDCO says it can procure solar power at a more competitive rate from outside the state. Compared to Aditya Birla's offer, L2, L3 and L4 bids were all at the same level of 3.19 INR ($0.0464) per kWh.

Business Standard says the agency may just go ahead and offer an additional 100 MW to the L1 bidder, but it is yet to take a call on the matter.

In a related development, the National Thermal Power Corporation (NTPC) has extended the time for solar power project developers to resubmit bids for its 2 GW solar power tender. It wants developers to come back with revised bids factoring in 25% safeguard duty imposition by August 13, 2018, according to Mercom India Research.