APDCL Seeks Approval For 15 MW Solar Project In Assam; AERC Calls For Cost Reduction Measures

Assam Power Distribution Company Limited (APDCL) submitted a petition to the Assam Electricity Regulatory Commission (AERC) seeking approval for a 15 MW grid-connected ground-mounted solar PV project. This project is proposed to be developed under a Build-Own-Operate model through a tariff-based competitive bidding process followed by an e-reverse auction. The location for the project is Bamgaon village near Balipara in the Chariduar Revenue Circle, Sonitpur District of Assam. APDCL had requested approval for the Request for Selection (RfS) document, the draft Power Purchase Agreement (PPA), and a ceiling tariff.

Initially, APDCL published the RFS with a ceiling tariff of ₹3.33/kWh as per AERC’s direction to lower it from ₹3.90/kWh. However, following a pre-bid meeting and feedback from potential bidders, the ceiling tariff was increased to Rs.3.60/kWh to encourage more participation. Despite this change and multiple extensions, no bids were received. APDCL stated that potential bidders raised concerns about the low global horizontal irradiance (GHI) in the region, smaller capacity leading to higher maintenance costs, and the challenging terrain that could increase transportation and equipment installation expenses.

Furthermore, APDCL referenced two similar solar projects in Borsola and Bilasipara, awarded in August 2023, where the discovered tariff was ₹.92/kWh. They requested approval to revise the ceiling tariff for the current project to the same rate of ₹3.92/kWh, arguing that it was fair and would attract more bidders, eventually bringing down the effective tariff through the auction process.

The bidders also highlighted that the project site might face water inflow due to its low-lying nature near a river without embankment. Moreover, APDCL had not yet conducted a detailed feasibility study of the land.

After reviewing the petition and submissions, the AERC noted that ₹3.92/kWh was the discovered tariff for projects that included land cost, but this 15 MW project did not factor in land cost, making the requested rate appear high. The Commission also compared this rate to solar tariffs in other states, finding APDCL’s proposed rate less competitive. It expressed concern over the potential impact of consumer tariffs.

As a result, AERC directed APDCL to identify options for executing the project at a reduced cost to ensure affordability for consumers. With these directions, the Commission disposed of the petition.