The 200 MW solar park at Pavagada Taluk, Tumakuru District in Karnataka is creating ripple effects again. The Karnataka Renewable Energy Development Limited (KREDL), the state’s renewable energy implementing agency reportedly has issued a tender for the park to be developed, with a deadline of January 3, 2018.
Towards the development of a 200 MW solar project in the Pavagada solar park, it was earlier in July 2017 that KREDL had issued an engineering, procurement, and construction (EPC) tender. However, the tender was withdrawn in August 2017. The issued tender was reportedly floated to auction 200 MW of capacity in blocks of 50 MW each.
Meanwhile, KREDL is reportedly expected to enter into long-term power purchase agreements with DISCOMs in Karnataka for about 25 years, which includes the sale of power generated from the park. It is also reported that some of the leading solar power developers have already been working on projects that were allocated to them in some earlier auctions. Tata Power Solar and Adani Power have been developing 150 MW of capacity each. Also, Fortum and Acme Solar are working on 100 MW each, and Arrow Solar and ReNew Power have been working on 50 MW each. It is expected that around 600 MW of capacity would be operational by December 2017.
The solar power projects are expected to generate power that would be combined with thermal power generated from power plants that are coal-fired and owned by NTPC Limited. The six developers have reportedly placed bids of around Rs. 4.80/kWh (7.3¢/kWh), of which the power distribution companies would purchase the electricity and pay for the bundled electricity at Rs. 3.30/kWh (5.51¢/kWh).
Meanwhile, the region where the park is based has been facing droughts, and the government has a vision of supporting the local population by collecting funds to the tune of Rs. 200 million ($3 million) from the project developers and contributing to establishing roads, health centers, schools, and other infrastructure.