Tata Power and Finnish firm Fortum’s Indian unit have been awarded 250 MW each of solar projects at the Pavagada Solar Park in Karnataka's Tumkur district.
Tata Power and Finnish firm Fortum’s Indian unit have been awarded 250 MW each of solar projects at the Pavagada Solar Park in Karnataka’s Tumkur district. Both the companies agreed to sell power from the upcoming solar projects at Rs 2.85/unit. According to sources in Karnataka Renewable Energy Development (KREDL), Tata had initially quoted Rs 2.88/unit while Fortum’s first bid was Rs 2.91/unit. The companies would now have to sign PPAs with the five electricity distribution companies (discoms) in a month. Capacities that would be tied up with each PPA would be related to the requirement ratio of discoms.
The projects are expected to be commissioned within 12 months from the date of signing of the PPAs. KREDL is soon expected to come up with another 150 MW of solar tenders for the same park. Authorities are contemplating to follow the engineering-procurement-construction (EPC), instead of the build-own-operate-transfer (BOOT), in upcoming 150 MW tender, an official said.
Initially, Karnataka had invited tenders for 1,200 MW, but received tenders for only 550 MW, due to the threat of safeguard and import duties on solar panels, leading to cancellation of bids.