Maharashtra extends bidding for 5 GW of solar

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In March, Maharashtra State Electricity Distribution Co. Ltd (MSEDCL) had issued a single tender for procuring up to 1.6 GW of coal-based power and up to 5 GW of solar power. Bidders are mandatorily required to offer both the capacities in full.

Through this tender, MSEDCL looks to tie up large-scale capacity in one step with optimal mix and also expects to get better rates due to benefit of larger scale. This will also attract potential generators of coal based power as they will be able to fulfill their renewable generation obligations (RGO).

[The Ministry of Power (Govt. of India) has brought draft guidelines for RGO for present and upcoming coal/lignite-based generating stations. Generating stations coming on stream on or after April 1, 2025 are required to supplement their conventional generation with minimum 10% of RE supply.]

MSEDCL shall enter into power purchase agreement (PPA) with the solar developers selected through competitive bidding for the total capacity of 5 GW. This electricity may be supplied from solar plants located in any part of the country and the power purchase agreement (PPA) will be for a period of 25 years.

Solar capacity will start coming in phases which will help during initial growth in demand. After some time, coal based capacity will be commissioned to fulfill the increased base load. If solar power plant is not commissioned as per the terms of the RfS, MSEDCL reserves the unconditional right to terminate the PPA for solar power plant and the PSA for the thermal power plant.

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