By Bizodisha Bureau, Bhubaneswar, October 6, 2018: The Grid Corporation of Odisha (GRIDCO), the bulk power producer and trader, will retender 125 MW of solar power capacities by the end of this month.

The Lowest (L1) tariff of ₹2.79 /kWh was quoted by Aditya Birla Renewable to develop 75 MW in the recent solar auction held by the Grid Corporation of Odisha (GRIDCO) for the development of 200 MW of grid-connected solar photovoltaic (PV) auction in the state.

“Barring the L1 bidder, all other participants quoted tariffs above ₹3/kWh”, a top official at GRIDCO told Bizodisha.com.

GRIDCO has no issue with Aditya Birla Renewable. In fact, it says Aditya Birla Renewables is free to develop another 100 Mw through the green-Shoe option.

GRIDCO tried to convince the other bidders to agree to build their proposed solar capacities but in vain.

Aditya Birla Renewables quoted ₹2.79) kWh to develop 75 MW of solar PV capacity. Sukhbir Agro bid ₹3.19 /kWh to develop 25 MW, Gupta Power quoted the same tariff to develop 20 MW. Even Eden Renewables quoted ₹3.19/kWh to develop 50 MW. ACME Solar quoted a tariff of ₹3.20/kWh to develop 50 MW.

This was the first tender that was introduced with a pass-through option back when there were uncertainties surrounding the imposition of safeguard duty.

“We have tried our best to impress upon the L2 and L3 bidders through a proposal to develop the project at the lowest bid rate of Rs 2.79 per Mw. The companies have declined for developing their bid capacity,’ said a Gridco official.

“We may go for a re-tendering for more capacities including the cancelled capacity. However, a decision in this regard is yet to be taken”, added the official.

GRIDCO is constrained to commit long-term power purchase agreements (PPAs) where tariff exceeds Rs three per unit. Gridco has been tapping more competitive sources of sourcing solar power. The power trader in August had signed a power sales agreement with the Solar Electrification Corporation of India (SECI). The pact is to buy 300 Mw from SECI’s upcoming auctions at an agreed price of Rs 2.57 per cent. The power is tipped to be fed to the state grid from 2019-20 end. According to the terms of the agreement with SECI, Gridco can draw this solar power without forking out transmission or wheeling charges.

Soon, Gridco is aiming to sign a PPA spanning 25 years with Aditya Birla Renewables. The company which secured 75 Mw capacity proposes to split into five 15 Mw projects, each coming up at a separate location. Odisha Industrial Infrastructure Corporation Ltd (Idco) will facilitate land allotment for the solar installations.