Finance, Other, solar

TANGEDCO hopes extending deadline will help attract investment for solar in state

According to reports, the Tamil Nadu Generation and Distribution Corporation, which has received investment commitments to set up power plants that can generate over 200 MW, has given bidders some more time to submit commitment letters, according to industry sources.

As of Thursday when the utility’s Board met, it had received letters of commitment from bidders to set up “a little over 200 MW” of solar power generation capacity, according to reliable sources.

It is optimistic of receiving some more investment commitments and hopes to tie up for a total of about 250 MW, the source said.

In January, the Tangedco had called for bids from investors to set up decentralised solar power generation facilities across the State. It had hoped to attract proposals for about 1,000 MW of capacity and enter into a 20-year power purchase agreement.

Over 90 bids totalling about 500 MW were submitted with quotes ranging between Rs 5.47 a unit of electricity to up to Rs 18. After assessing the proposals the utility made a counter offer of Rs 6.48 a unit.

Individual investors who planned to avail of accelerated depreciation benefits have largely committed to the offer. Larger, utility scale players looking at standalone projects have not been so enthusiastic, according to industry sources.

Among the large players, Sun Edison, a US-based solar power project developer, which had bid for a total of 50 MW has committed to set up a 10-MW facility, according to sources in the know.

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Discussion

One thought on “TANGEDCO hopes extending deadline will help attract investment for solar in state

  1. You can’t hide false claims for a longer period. TN has to improve governance and there is sustainable politics due to short sighted leaders without any national interest in place. REgional parties do not offer sustainable solutions due to small thinking. Credibility loss is quite detrimental especially payment, if suffers with frequent change of government or leadership without any importance to Nation !!

    Posted by Praveen Kulkarni | March 3, 2013, 10:46 pm

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