The Indian state of Karnataka has allocated 130MW of solar power projects for tender next month.
Karnataka is the latest state to release a tender following Tamil Nadu, Andhra Pradesh, Rajasthan, Bihar and Odhisha.
“Karnataka's tendering is part of the trend where solar in India is no more restricted to JNNSM, and is spreading across states,” said Madhavan Nampoothiri, founder and director of RESolve.
In order to qualify for tender, solar PV or solar thermal projects must be a minimum of 3MW in size. Although a bidder is not limited to the number of projects they can bid for, the total allocation per project is limited to 10MW.
The state is not demanding a lowest bid as has been the case in other states. Instead, a benchmark tariff for solar PV has been set at INR14.50 (US$0.27)/kWh and solar thermal is INR11.35 (US$0.21)/kWh. In order to win, bidders have to offer the lowest price.
The onus for connecting the plant to the grid has been left to the developer. The winning bid can expect approval for grid connection from the state utility, Karnataka Power Transmission Company, within 180 days of signing the PPA with the utility.
A developer’s other responsibilities include providing a security deposit for its bid of INR20 lakhs (US$3,700) per megawatt.
The state also requires that PV projects be commissioned 12 months from the date of signing the PPA with the utility and 24 months for CSP projects.
All bids have to be submitted by 23 April 23.
Currently, Karnartaka has 14MW of grid-connected solar power.