Andhra Pradesh Solar Bidding and Open Offer Update

by Pradeep

Andhra Pradesh and Tamil Nadu have been the most followed states in the recent times on the Solar front owing to their hugely popular 1000 MW Solar tenders (Andhra Pradesh and Tamil Nadu) and Net Metering Policies (Andhra Pradesh and Tamil Nadu).  As announced a couple of weeks back, Tamil Nadu is trying to expedite things resulting in close to 700 MW expected to be signed by the end of October. On the Andhra Pradesh front, while no official announcement has been made, sources indicate that close to 49 MW of PPA from 5 companies have been signed as part of the Solar bidding that was conducted in February this year. It is also learned that close to 86 MW from around 11 developers are at various stages of the process and Performance Bank Guarantees (PBG) have already been submitted for the same.

In all, close to 135 MW seems to be potentially tied up in PPAs which is considerably less compared to the size of 1000 MW for which tenders were called. However, this is a good start to the Andhra Pradesh Solar story that was considered a disappointment post the announcement of the dismal tariff of Rs.6.49 per Kwh. As it has already been said, the low tariff and the Rupee devaluation have caused several Solar Power Developers to back out from the process. Latest in the list of reasons is the State bifurcation issue that has waned the confidence of Solar developers who have drawn back in anticipation of future issues.

While that’s the update on the Solar bidding front, the Open Offer too seems to have received good action. Announced on 31st August by APTRANSCO, the Open Offer was an invitation to Solar Power Developers to supply power @ Rs.6.49 per Kwh even though they have not participated in the bidding process. As per sources, 150 MW of responses were received for the Open Offer as of yesterday (29th September, 2013). Today being the deadline, quite a few applications seem to have flown in the last moment. The cumulative MW responses received for the Open Offer is yet to be announced. It is anticipated that a few large applications (>=50 MW) could have been submitted and these would form the major chunk of the responses to the Open Offer.


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