Published on January 26th, 2016 | by Smiti0
Delhi Utility To Float 700 MW Renewable Energy Tender!
January 26th, 2016 by Smiti
Originally published on Sustainnovate.
The rapidly increasing competition in solar power auctions in India have promoted utilities to take advantage of the falling tariffs and procure electricity to meet their renewable purchase obligations.
Delhi-based power utility BSES has announced plans to procure renewable energy power purchase agreements amounting to 700 MW through competitive auction. The power procured through these auctions will be used by the utility to meet its renewable purchase obligation.
Utilities in Delhi face steep renewable purchase obligations but have been unable to meet the same so far. Lack of land and renewable energy resources in Delhi make it virtually impossible for these utilities to set up renewable energy projects within the state.
Tariff bids in recent solar power auctions have nose-dived across various Indian states. Several major international project developers, including SunEdison, SB Energy, and Fortum Energy have quoted record-low tariffs. Fortum Energy recently quoted a tariff of Rs 4.34/kWh (US¢6.5/kWh).
BSES had earlier floated tenders to procure renewable energy, especially solar power. However, the bids submitted by the project developers were significantly higher than recent bids in solar power auctions. As a result, BSES has decided to set a ceiling tariff against which project developers will have to submit the lowest bids possible.
Another Delhi-based discom, Tata Power Delhi Distribution Limited, recently signed a power purchase agreement with SunEdison for supply of 180 MW solar power from a project located around 600 kilometres away in the state of Madhya Pradesh.
Clearly, the trend is in favor of solar power now.
Image via BSES