Tata Power arm wins 330 MW solar project in Madhya Pradesh auctions

The company aims to increase the share of green energy in its power generation portfolio to 80% by FY30, up from the current level of 31%.

TP Saurya, a subsidiary of Tata Power, has emerged the winner for 330 megawatt (MW) of solar capacities in the auction for 500 MW of solar plants to be built at the Neemuch solar park in Madhya Pradesh.

The company quoted the lowest tariff of Rs 2.14/unit for the solar capacity in the auction conducted by state-run Rewa Ultra Mega Solar Ltd (RUMSL). According to sources, Saudi Arabia-based Al Jomaih Energy and Water Co has won the remaining 170 MW capacity against a tariff of Rs 2.15/unit.

Tata Power currently has a solar portfolio of 1,765 MW across the country and its wind power capacity stands at 932 MW. The company aims to increase the share of green energy in its power generation portfolio to 80% by FY30, up from the current level of 31%. The other winner, Al Jomaih, had bagged solar capacities in the auctions held in November and December, 2020, where tariffs had fallen to the record lows of Rs 2/unit and Rs 1.99/unit, respectively.

As much as 25% solar power from RUMSL projects will be supplied to the Indian Railways across several states. “The success of the auction proves that facilitating institutional consumers to procure inexpensive solar power can be beneficial, rather than looking for buyers only among discoms,” Manu Srivastava, principal secretary, government of Madhya Pradesh, told FE. Srivastava was, till recently, in-charge of RUMSL and was instrumental in conducting the large solar park auctions in the state.

SolarArise, which is jointly backed by funds managed by Kotak Mahindra, European Investment Bank and UK-based ThomasLloyd Group, had won 125 MW capacity against a tariff of Rs 2.34/unit in the same auction.