Fortum and Tata Power Win 500 MW of Solar Projects in Pavagada
The Karnataka Renewable Energy Development Ltd (KREDL), nodal agency in charge for implementing renewable policies in the state of Karnataka, has awarded 500 MW (250 MW each) of solar projects to the Fortum Corporation and Tata Power Renewable Energy Ltd (TPREL).
The projects awarded are a part of the re-tendered 650 MW projects to be built at the massive Pavagada Solar Park in Tumkur. The park has a combined capacity of 1200 MW of grid-connected solar PV which was tendered back in January. However, the agency was able to auction only 550 MW of the tendered capacity due to poor response from bidders amid various ongoing uncertainties in the solar sector. Thus, after revisions and amendments made in the solar project guidelines and policies, KREDL re-tendered 650 MW in project capacity back in April of which 500 MW has now been awarded to the two successful bidders.
Fortum Corp. has 185 MW of large-scale solar projects in operations while Tata Power has nearly 1.35 GW of solar installed capacity. Both firms quoted similar rates of the tariff at ₹2.85 (~$0.042)/kWh which was accepted by the KREDL. The Letter of Award (LOA) was issued on June 28, 2018, and the Power Purchase Agreements will be signed within one month from the date of issuing of the LOAs i.e. 28th July.
We will start a new solar development project – We won the right to build 250 MW #SolarPower plant in India! Pavagada solar park is the location and commissioning of the plant is expected in the third quarter of 2019. Read more: https://t.co/LxVG0CVWcE #Jointhechange pic.twitter.com/Zbx5NgHs1H
— Fortum Global (@Fortum) July 3, 2018
As a part of the amendments that were made to the project guidelines which attracted more bidders, the agency, extended the project commissioning timeframe from 10 months to 12 months and the maximum time-period allowed for achieving the project commissioning along with encashment of performance security and payment of liquidated damages from 14 months to 16 months.
As a part of the initial 550 MW that was successfully auctioned as a part of the first tender ReNew Power, won the bid to develop 300 MW in project capacity, Avaada Power won 150 MW, and Azure Power won the remaining capacity of 100 MW. Of the remaining 150 MW of capacity planned for the solar park, the government is yet to make any decision with the plan of action.
Karnataka is the stand-out leader amongst all the states with an installed large-scale solar capacity over 5.1 GW and another 1.6 GW in the development pipeline.
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