Adani, Essel and Nalco might line up for Odisha solar tenders
The bids for solar power projects, to be opened shortly by the Odisha government, should see a contest between some reputed private developers and leading public sector units (PSUs) which are diversifying into the renewable energy space.
The state government within a fortnight, is to set in motion the tenders for 200 Mw. “We will follow the latest guidelines on solar power auctions issued by the (Union) ministry of new & renewable energy (MNRE). The reverse bidding mechanism would be followed to select the developer. We feel Odisha could secure a levelised tariff (rate) of ~3.50 a unit. This would still be competitive, given Odisha's limitations in quantum of solar radiation received and also the challenge in land acquisition,” said Hemant Sharma, the government's secretary (energy) and also chairman-cum-managing director at Gridco, the state's power trading entity.
ACME Solar, SB Energy (a joint venture of SoftBank, Foxconn Technologies and Bharti Enterprises), Tata Power, Essel Green Energy and Adani Power have shown interest. So have PSUs, leading PSUs such as National Aluminium Company, NLC and North Eastern Electric Power Company. The state has got Gujarat Energy Research & Management Institute for preparing the bid documents. Gridco Ltd would take all the power generated. The projects will be developed on the non-solar park model, where the developer may choose the location.
However, some observers feel Odisha needs to make its solar power bids more attractive for investors. “If anyone is bidding below 100 Mw, a rate of ~3.5 is not feasible without government support in the form of VGF (viability gap funding). If a single developer is bidding for minimum capacity of 200 Mw, the rate is feasible, provided that there is no anti-dumping duty (on solar panels), which the Indian government is likely to keep at 18 per cent. Other states are faring better by providing incentives and bearing the cost of transmission. There is no such support from the Odisha government and the cost of land is also high. Solar irradiance is also low in Odisha in comparison,” said Chandrashekhar Mishra, managing director at Canyon Consultancy, a project management consultant in the segment.