Staggered buy will help get better bargain: TNERC
The Tamil Nadu Electricity Regulatory Commission (TNERC) has directed the Tamil Nadu Generation and Distribution Corporation (Tangedco) to procure 1,500 MW each of wind and solar power in phases to get a better price, instead of inviting tenders for the entire quantum in one go.
The State power utility had sought approval for procuring 1,500 MW of wind power through reverse bidding (in which the lowest bidder is selected as the winner) at an upper limit of ₹2.65 per unit.
It also sought to procure 1,500 MW of solar power through reverse bidding at a maximum ceiling price of ₹3 per unit.
In its petition, Tangedco stated that it had to procure 1,679 MW of wind power to meet the renewable energy obligation for 2018-19. Hence, it was proposing to procure 1,500 MW in the second phase.
In phase 1, Tangedco had finalised 450 MW out of the tendered quantity of 500 MW, at the rate of ₹3.42 per unit.
The TNERC said it was of the opinion that if power procurement was taken up in stages, it would induce more competition in the bidding process.
‘Real benefit’
It would also help Tangedco get the “real benefit” of discovering a competitive price in the reverse bidding process, besides enabling it to achieve its target even if any of its tenders got entangled in legal disputes, the regulatory body said.
The TNERC directed Tangedco to procure the 1,500 MW of wind energy in three stages of 500 MW each through the reverse auction route, with a ceiling price of ₹2.65 per unit.
In a separate order, it directed the State power utility to procure 1,500 MW of solar energy in three stages with an upper limit of ₹3 per unit.
Source: thehindu
