MSEDCL Tenders for 487 MW Solar Projects Under Component A of KUSUM Scheme

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Maharashtra State Electricity Distribution Co. Ltd (MSEDCL) desires to procure cumulative 487 MW (AC) solar power from decentralised solar projects through competitive bidding process (followed by e-reverse auction) to be connected at distribution network (11/22 KV) under Component-A of “Pradhan Mantri Kisan Urja Suraksha
Evam Utthan Mahabhiyan” (PM-KUSUM) Scheme in the State of Maharashtra.

Pre-bid meeting (through VC) is on 31.08.2021 at 11.00 Hrs and Last date for submission of Technical & Financial bids is 17.09.2021 at 16.00 Hrs

The PM-KUSUM Scheme was launched in 2019 with 3 components. Component-A is for Setting up of 10,000 MW of Decentralized Grid Connected Renewable Energy Power Plants on barren land. Under this component, renewable energy based power plants (REPP) of capacity 500 kW to 2 MW will be setup by individual farmers/ group of farmers/ cooperatives/ panchayats/ Farmer Producer Organisations (FPO)/Water User associations (WUA) on barren/fallow land. These power plants can also be installed on cultivable land on stilts where crops can also be grown below the solar panels. The renewable energy power project will be installed within five km radius of the sub-stations in order to avoid high cost of sub-transmission lines and to reduce transmission losses. The power generated will be purchased by local DISCOM at pre-fixed tariff. Under component A, Procurement Based Incentive (PBI) @ 40 paise/kWh or Rs. 6.60 lakhs/MW/year, whichever is less, will be provided for the first five years by MNRE to DISCOMs, for buying the power from farmers/developers. Component B is about stand along solar pumps, while scheme C is about grid connected solar pumps.

Winning bidders will enter into a power purchase agreement with MSEDCL for a 25 year period.

MSEDCL has set the ceiling tariff for this tender at Rs 3.10/unit, with a non refundable processing fee of Rs 5,000 per MW. A net worth requirement of Rs 1 crore per MW makes it a little challenging for farmers who might be interested.

In June MSEDCL had issued EOI for 500 MW of solar project under the KUSUM scheme.

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