Indian Coal Mining Company NLC Issues 500 Megawatt Solar Tender

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Originally published on CleanTechies.

Moving forward with its stated target to aggressively add solar power capacity, Indian coal mining company NLC has issued a tender to set up 500 megawatts of solar in the state of Tamil Nadu.

Each project will have a minimum capacity of 50 megawatts each and no more than 10 projects will be set up. Developers will have 12 months from the date of the project being awarded to commission the projects.

Developers will be free to use either Indian-made solar modules or imported modules at their projects.

Power generated from the projects will be sold to the state utility of Tamil Nadu under a long-term power purchase agreement. Developers will be responsible for operation and maintenance for a period of 15 years.

Neyveli Lignite Corporation or NLC Limited has set a target of installing 4,000 megawatts of solar capacity in the states of Tamil Nadu, Karnataka, Kerala, Telangana, and Rajasthan. These projects would be implemented under the National Solar Mission scheme announced by the central government.

NLC recently quashed plans to set up a large solar power project in Rajasthan due to low demand from the state utilities. It is unclear if the Tamil Nadu utility will procure the entire 500 megawatts, as it has already signed power purchase agreements with several solar power projects.

NLC currently operates 10 megawatts of solar power projects and has 65 megawatts under construction.

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Reprinted with permission.