SAEL and Avaada Emerge as Winners in MSEDCL’s 500 MW Solar Power Auction

SAEL Industries and Avaada Energy have won the latest auction by Maharashtra State Electricity Distribution Company (MSEDCL) to supply 500 MW of solar power from intrastate grid-connected solar projects. The tender was floated in February this year and the winning bid was announced recently. SAEL won 100 MW by quoting ₹2.87/kWh, and Avaada won the rest of 400 MW at a tariff of ₹2.88.

The procurement of solar power through this auction will help MSEDCL increase its renewable energy procurement and meet its renewable purchase obligation (RPO) targets. RPO is a regulatory mechanism that requires electricity distribution companies to purchase a certain percentage of their power from renewable energy sources. MSEDCL plans to sign a PPA with the chosen bidders to buy power for 25 years.

The tender specified that projects must have a minimum capacity of 25 MW at a single location, and the minimum bid capacity should be 50 MW.

Eligibility was given to projects under construction, not yet commissioned, or without any long-term power purchase agreement (PPA) with any agency if they were not accepted under central or state programs. Only established and operational technologies were allowed to reduce technology risk and ensure the timely commissioning of projects.

The winning bidder will have to arrange for grid connectivity, including transmitting power up to the point of interconnection and setting up energy accounting infrastructure. The tender also mandated the use of modules from the Approved List of Models and Manufacturers issued by the Ministry of New and Renewable Energy. Additionally, the solar modules used for the project must have a warranty for peak output wattage, which should stay within 90% by the end of ten years and 80% by the end of 25 years from the commercial operation date.

Overall, the auction is a positive development for the renewable energy sector in Maharashtra and will contribute to the growth of solar power in the state. The competitive tariffs quoted by the winning bidders also demonstrate the increasing competitiveness of solar power as a source of electricity.