Solar power companies participating in the bid floated by Tamil Nadu Generation and Distribution Corporation (Tangedco) to enter into long term solar power supply with it were caught by surprise by a lower than expected bid.
In the price bids opened today, the lowest power tariff was quoted at Rs 5.97 a unit. Over 90 bidders had participated in the bids floated by the power utility.
The technical bids were opened early this month with bidders submitting their quotes for a total of about 500 MW of solar power generating capacity.
Tangedco had hoped to receive bids for over 1,000 MW.
Officials said the bids will be placed before the Board level tender committee which will decide on the tariff based after examining the viability and start negotiations with other bidders who will be expected to match the tariff.
According to industry sources, the low bid sets a new benchmark for solar power tariff. For instance, the preferential tariff under the Jawaharlal Nehru National Solar Mission is now at about Rs 7.49 a unit. The bid in Tamil Nadu is even more competitive.
Most of the bidders had appeared to have pegged their bids around the Solar Mission rates, industry representatives said.