Odisha to buy 300 Mwin SECI auctions

Odisha's major power trader Gridco is keen on increasing its appetite for solar power. Close on the heels of its maiden auctions for 200-Mw capacities, the power trader is eyeing procurement of another 300 Mw from auctions to be conducted by the Solar Electrification Corporation of India (SECI).

To firm up its share, Gridco has entered into a power sales agreement with SECI. Power from the capacities to be auctioned is expected to be supplied to the state grid from the end of 2019-20 onwards. The schedule is in sync with the 18-month gestation period for commissioning of a solar power unit.

Gridco, despite its pressing Renewable Purchase Obligation (RPO), has been sluggish to buy green power. Until its recent solar tenders, the state-controlled entity was shelling out ~4.5 per unit to purchase solar power. More, the abundance of coal-fired capacities in Odisha had dissuaded the bulk power buyer to build its renewable pool. But, the competitive price discovery at the auctions and the promise of cheaper power tariffs at SECI auctions have enthused Gridco.

“At our auctions, the L1 bidder quoted a price of ~2.79 per unit. But, SECI has assured us solar power at an even more competitive tariff of ~2.57. We don’t have to pay the transmission and wheeling charges as they are exempted under the agreement", said an official in the know.