One of India’s largest renewable power companies, Tata Power Renewable Energy, has secured the rights to develop a large solar power project.
According to media reports, a subsidiary of Tata Power Renewable Energy secured the rights to develop 250 megawatts of solar power projects in the western state of Maharashtra. The capacity is part of a solar power park in the state. A tender was issued by the Maharashtra State Electricity Distribution Corporation Limited, a power distribution utility.
Apart from Tata Power, India’s largest power generation company, NTPC and hydropower generation company SJVN also participated in the auction. NTPC and SJVN submitted bids of Rs 2.82 (US¢3.8) and Rs 2.53 (US¢3.4) per kilowatt-hour. However, the entire capacity was awarded to Tata Power Renewable Energy as it had submitted a bid of Rs 2.51 (US¢3.8) per kilowatt-hour. This is 11.3% lower than the maximum tariff bid allowed as per tender conditions.
Tata Power is required to commission the project within 15 months of signing the power purchase agreement. The company must achieve financial closure within 9 months. The 250-megawatts of capacity is to be commissioned in three blocks of 50 megawatts, 75 megawatts, and 125 megawatts.
Last year, Tata Power Renewable Energy also secured a contract from another power distribution utility in Maharashtra to set up a 225-megawatt solar-wind hybrid project.
We also recently covered a story that Tata Power Renewable Energy may be planning to transfer its solar and wind power assets into an infrastructure investment trust and then get it listed at Indian bourses.