Historic low tariff for 35 MW rooftop solar tender

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AMP Solar India submitted the lowest tariff – Rs. 1.58 – for 2.25 MWp to be installed across 10 sites of the Power Grid Corporation, a Central Public Sector Undertaking. Renew Solar Energy, meanwhile, submitted the highest tariff, of Rs. 4.12 ($0.058) for 500 kWp of capacity.

At Rs. 2.20 ($0.031), Azure Power won the bid for 5.4 MWp of capacity for rooftop installations at 291 colleges under the Department of Higher Education, across the state; while Mundra Solar was awarded 4 MWp at Rs. 1.90 ($0.027). The smallest capacity, 25 kWp, went to Archita Renewable for Rs. 2.32 ($0.033).

“The low rates are surprising, but it may be noted that there will a 3% increase in tariff every year for the next 25 years,” Shrikant Deshmukh, Superintending Engineer, MPUVNL, told pv magazine. “We will soon begin implementation of the project,” he added.

To be developed under the Renewable Energy Service Company (RESCO) model, the 35+MW tender was for projects, which will be developed across 643 sites in Madhya Pradesh, including at colleges, universities and government establishments, as well as private entities.

Among all state buildings, the lowest rate is for municipal bodies, which will receive power at Rs. 1.69 ($0.024) per unit, while medical colleges receive power at Rs. 1.74 ($0.025) per unit – nearly one-fourth of what they are presently paying.

Under the RESCO model, consumers enjoy solar power with zero upfront investment and at rates much below the prevailing DISCOM rates.

Madhya Pradesh’s RESCO project is being implemented as a part of the larger Rooftop Solar Program of government of India, with support from World Bank and International Solar Alliance.

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