The outcome of the tenders for the 6,500 MW solar power projects proposed to be set up across 10 parks in Andhra Pradesh is being keenly watched in the backdrop of recent tariffs which had hit a low of ₹1.99 per kWh in Gujarat.

The project tender also has a reverse tender process, which has the potential of further bringing down the final bid.

Five companies have filed 24 bids before the December 28 deadline for the 6,500 MW, which has a green shoe option of 50 per cent. With the green shoe option and bids for nearly 15,000 MW, the entire 10,000 MW solar capacity to supply free power to farmers could be covered, according to the sources.

Agriculture power

The State Government has proposed a 10,000 MW solar power project to provide free power to the agriculture consumers. These solar parks are to be taken up on build, operate and transfer (BOT) mode and will be transferred after the 30 years power purchase agreement (PPA) period.

As per the bids filed, the Adani Group has filed for all of the 6,500 MW, followed by Shirdi Sai Group for 5,800 MW, NTPC for 1800 MW, Torrent Power for 300 MW and HES & SSICPL consortium for 600 MW.

Extention requested

Meanwhile, the National Solar Energy Federation of India has written to the State Government to extend the bid dateline, which expired on December 28, 2020, to enable some more companies to participate.

While officials are gearing up to open the bids, this will be followed by a reverse tendering process. It is expected that the entire bid process is likely to end by February 2021. However, this may get delayed, if the Government considers permitting others to bid after the deadline.

According to Andhra Pradesh Electricity Regulatory Commission data, 12,221 million units of power is being consumed by 18.17 lakh agriculture connections in the State and the discoms are supplying 13,039 million units. The Government has allotted ₹8,354 crore subsidy in the farm sector for 2020-21, which is more than double the allocation by the previous government.

While Discoms are spending ₹4.68 per kWh now, the solar energy rates has dipped to ₹1.99 and ₹2.43 in recent tenders in other States. It is estimated that the State Government can save up to ₹48,000 crore by use of solar energy for 30 years.

While the Government will lease 50 per cent of the Government lands at the rate ₹5 per acre, the remaining lands are either private or assigned lands. The Government will pay for the lease lands at the rate of ₹25,000 per acre per year.

The bid envisages a capacity Utilisation Factor of 18 per cent during the period of implementation of PPAs.

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