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Welspun, GRT, Sun Edison confirm solar projects in Tamil Nadu

According to reports, Welspun Energy, Chennai-based jewellers GRT and the American solar major Sun Edison are among those who have agreed to put up solar power projects in Tamil Nadu.

Welspun wants to build a 30-MW plant, GRT 15-MW and Sun Edison 10-MW, under their respective special purpose companies.

They are among several companies of a total capacity of 226 MW, who have given their acceptance to sell their power to the State electricity distribution utility, Tangedco, at a starting rate of Rs 6.48 a kWhr.

Tangedco is expected to issue ‘letter of intent’ to these bidders early next week.

Tangedco had come up with a tender for procurement of solar power from 1,000 MW of solar power plants, the rights to set up which would be awarded to bidders who sell the power at cheapest.

However, when the bids were opened in early January, it was found that offers had been received for only 499 MW.

The least price quoted was by Mohan Breweries — Rs 5.97. The higher quotes went well beyond Rs 14. Tangedco later froze Rs 6.48 a kWhr as the ‘workable tariff’— for the first year. The project developers would get 5 per cent tariff escalation for the first 10 of the 20-year power purchase agreement period.

No formal deadline has been given out to the bidders. It is, therefore, possible that the final tally may end up higher than the 226 MW, which was submitted to Tangedco’s board a few days ago.

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