LIVE – Tamil Nadu Solar Bid Opening – as it unfolds (Updated..)

The details of the bid opening for the 1000 MW of allocation under the Tamil Nadu Solar Policy on 04-01-2013 at Tangedco office in Chennai as it happened are given below. The list of developers has been updated.

As of 1515 Hrs – 157 MW

As of 1530 Hrs – 231 MW

As of 1545 Hrs – 303 MW(54 Bidders)

As of 1600 Hrs – 348 MW ( 68 Bidders)

As of 1620 Hrs – 431 MW( 81 Bidders)

Final count – 499 MW/ 92 Applications/104 projects (Note: The application number and number of projects is subject to confirmation from Tangedco)

(Update : The financial bids were opened on 30 Jan 2013 and the list is details are available here. Tangedco later announced a workable tariff of Rs.6.48/kWh, the details of which can be found here).

The question is, was the bidding successful or not? Is the glass Half Empty or Half Full? I am sure the authorities will be disappointed, but do they have a backup option to achieve the 1000 MW target? Another question is, what will be the L1 and how many of the bidders choose not to accept the L1 and drop out?

We had written earlier that the Tamil Nadu policy implementation might be moving too fast thereby putting pressure on prospective bidders. The shortfall in applications is a proof of that. The huge interest which was evident during the pre-bid meeting has not translated to actual bidding because of various concerns on the part of the developers.

Nonetheless, we had hoped that there will be more interest, but it did not turn out that way.

Moving onto some highlights – it appears that Sun Edison has submitted bids for 50 MW so far in 4 separate bids. Some other companies include Waaree – 10 MW, SWELECT – 10 MW, ILFS – 30 MW, GR Thangamaligai – 15 MW, Welspun – 30 MW, Lanco – 25 MW and Swiss Park Vanijya – 25 MW.

Interestingly, of the 104 individual bids placed, 83 bids are for projects of equal to or less than 5 MW. Despite having no upper limit, the highest bid was for a project of 50 MW. There was 1 project each for 15 MW, 20 MW, 25 MW and 30 MW(One of the other 25 MW projects is by Swiss Park Vanijya and is distributed between different locations).

If all these bids make it to the PPA stage, the upside will be that Solar will be more widespread in Tamil Nadu unlike in JNNSM, where allocations went to big companies and smaller players were essentially shut out due to the tough qualifying criteria. (It is a different issue if it was good or bad!!). Geographically, the bids are spread across the state(21 districts of the total 32), but a big part of the projects are from the southern districts. Some of the districts which saw very high interest are

a. Ramanathapuram – 123 MW

b. Tiruchirappalli – 59 MW

c. Karur – 55 MW

d. Sivaganga – 34 MW

A graphic representation of the geographic spread is given below. Just to reiterate, this map is based on the initial bids and this will change since some bidders may choose not to accept the L1 price.

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The details of the bids for projects are given below. Some of the names need to be confirmed by Tangedco.

 

Note : We have started a LinkedIn Forum for sharing news,insights and perspectives on solar specific to Tamil Nadu. The group is updated every day and several stakeholders have already joined the group. I invite you to join the group and share your views there. The link to the group is http://www.linkedin.com/groups/Tamil-Nadu-Solar-4681107



Madhavan Nampoothiri (110 Posts)

Madhavan Nampoothiri is the Founder and Director of RESolve Energy Consultants. He has over a decade of work experience in the energy sector including renewables and has worked in countries like the USA, China, Switzerland and India. Madhavan has a B.Engg in Mechanical Engineering(M.S. University,India) and MBA(Indiana University,USA).

Madhavan is regularly invited to speak at global level conferencesand his opinions on the renewable industry are regularly featured in media. For a detailed profile, please click here


13 Comments

  1. Sebastian says:

    Hello,
    This looks very interesting thanks for sharing this information with us.

  2. Excellent Compiling.

    Very Good.

  3. perfect (ISMS - Information sharing management system) - GREAT WORK DONE. says:

    Thanks in MW – Great work done.

  4. Thank you all for the feedback!!

  5. rakeshkubde says:

    Hello Sir
    Thank you sir for such a informative details. I m very curious to know the possible reason why many big players are not interested or not bid for a huge capacity. They have capacity, manpower, technology still they are not bidding for it. Please give me little more information over it except those generalised problem (Grid infrastructure or payment related) which occur in Tamilnadu.

  6. @Rakesh,

    Our understanding is that the reasons for this is precisely what you have stated. Many developers feel that payment security is a major concern. Financial institutions would view this to be a high risk and so would be reluctant to fund these projects which limits the number of developers.

    Aside from this, TANGEDCO recently absolved itself from any responsibilities for losses occurring due to grid unavailability/failure etc. as seen from their sample PPA. Their stance is that the grid infrastructure maintenance etc. is under the purview of TANTRANSCO and as such should such a failure arise, it would be treated as force majure and in those scenarios, they would not be held responsible.

  7. venkataraman says:

    sir its very advantages i want to sell solar street lights in bulk i doing on commision basis i want to but which i need financial asistance and market also tech to instal myself with suitable poles, help me

  8. VIJAYKUMAR SURIYAN says:

    ramnadu and sivaganga,madurai,karur districts only competition. all others easily get it.

  9. Ramesh K N says:

    Thanks Mr.Madhavan. Very useful !

  10. [...] According to Nampoothiri, Sun Edison submitted 50MW in 4 separate bids. Even though there was no upper limit, majority of the projects, 83 namely, were for 5MW and less. Ramanathapuram in the southeast of Tamil Nadu saw the highest interest with 123MW. More details can be found in Nampoothiri’s blog. [...]

  11. [...] blog about Tamil Nadu bidding which we had shared with our readers has been widely quoted in the national(Economic Times) and [...]

  12. saravanan says:

    Excellent information on the Bidders ….

  13. Kanaga Gnana says:

    Very informative. In my opinion no quotes for large size Solar power came due to the reason of non availability of the Grid network in TN as well as having put a very large size of plant people are concerned that will TANTRANSCO maintain grid supply during the sunlight hours of the day with present very bad condition. The Wind Power generators have been not paid there dues for several months and even years. The Wind turbines had to be stopped due to frequent failures of the grid. Continuity of supply must be first achieved and the financial situation of the Electricity authority must improve. This can only be realized by having a good cost based Tariff and if any subsidy is to be given that subsidy must be born by the Government. Without this taking place The electricity sector will never be able to run financially viable! No large Solar Projects will materialize with this type of situation.

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