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

• The new tender is under the KUSUM component A, which targets ground mounted solar plants with a maximum capacity of 2 MW.
• Component A results have not been evident, so far, and we anticipate a solid press this year.

Maharashtra State Electricity Distribution Company Limited (MSEDCL) has released a tender for quotes under component A of the KUSUM (Pradhan Mantri Kisan Urja Suraksha Evam Utthan Mahabhiyan) scheme, that has a focus on boosting incomes of farmers and also generating solar power at the scale. Until now, most of the solar success under KUSUM has actually been seen in component B, which is efficiently the off grid component of the scheme. This is the second tender from MSEDCL under the KUSUM scheme within 3 months, after its previous tender in June.

IN KUSUM component A, schemes can be between sizes 0.5 MW to 2 MW. Under the scheme, 10,000 MW of Decentralized Ground Mounted Grid Connected Renewable Power Plants of private plant evaluate to 2 MW are being targeted throughout India. Ideally on barren land. In case of farming land, use stilts to organize the solar plant is mandated. Component A in KUSUM is the only one that is not focused on solar irrigation pumps. Component B is about stand along solar pumps, while scheme C has to do with grid linked solar pumps. Winning prospective buyers will certainly participate in a power purchase arrangement with MSEDCL for a 25 year period.

MSEDCL has actually established the ceiling tariff for this tender at Rs 3.10/ device, with a non refundable handling charge of Rs 5,000 per MW. A total assets requirement of Rs 1 crore per MW makes it a little tough for farmers who may be interested.

A reduced Capacity Utilisation Factor level of 15% indicates some bidders could opt for using multicrystalline components, if they can source them inexpensively from residential producers, as KUSUM scheme mandates DCR.

Surprisingly, generators are allowed to go for repowering as soon as in the 25 year duration, for a duration not going beyond 6 months. The Arranged date for appointing has been set at year from the date of honor of LOA.

The last date for entry of proposals is September 17, 2021.

While we can securely expect many more states to follow up with their very own tenders to fill Component A projections under the KUSUM scheme, one hopes that systems at government firms have been streamlined sufficiently to allow prompt authorizations and also support for the winning prospective buyers. We have actually seen just how, in a string of judgements from APTEL this month, federal government agencies have actually been located to be at fault for delaying projects, as well as the generators pain compounded better by the state regulatory authority taking the side of the government firms.