Tata Power said it signed a preliminary agreement to set up and supply power from a 250 megawatt solar power plant to Maharashtra state.
This is one of the largest, single-site solar projects ever awarded by any agency in India. Typically, solar power plant awards tend to be in the 100 MW range.
The new plant will be set up at Dondaicha Solar Park in Dhule District of Maharashtra, and the contract will entitle Tata Power to supply power from this plant to Maharashtra at the predecided price for 25 years.
“Maharashtra State Electricity Distribution Company Limited (MSEDCL) has conveyed consent to purchase the power generated from this solar plant. The solar plant project will be commissioned within 15 months from the date of PPA execution,” the power generation company said.
The 250 MW plant has increased the total solar power order book of Tata Power by about 18% to 1,664 MW.
The total installed solar power generation capacity for the company remains at 2,947 MW.
State governments have been inking such 25-year power purchase agreements from solar power developers using a reverse bidding process.
Besides Maharashtra; Karnataka, Tamil Nadu, Rajasthan, Andhra Pradesh, Telangana and Gujarat too have been handing out such contracts in a big way.
The central government too has been entering such contracts via central PSUs.
The efforts are part of India’s efforts to reduce its reliance on fossil fuels, particularly low-quality coal, to meet its demand for power.
Unlike a coal plant, a 250 MW solar plant will only produce an average of around 60-70 MW of power, as sun light is not uniformly available throughout the day.