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Aug 2025
Solar RESCO race opens under capped tariff regime
8A decentralized tender of over 60 MW has entered the tariff discovery stage under a state utility, marking another significant addition to ongoing solar projects in India. Developers must commit to 25 years of O&M, with ceiling tariffs fixed at Rs.3.04/kWh, pushing bids into a low-margin zone.
8Unlike past rounds, this bid enforces a strict cap on solar tariffs. With 2 MW projects spread across more than 30 substations, only the most cost-efficient developers will withstand long-term obligations under PM-KUSUM A. Such distributed capacity design adds to the growing list of solar projects in India that aim to integrate renewable generation closer to demand centers.
8Instead of one large block, the package splits capacity into dozens of 2 MW lots, each tied to specific 33/11 kV substations. This structure favors smaller developers while complicating aggregation strategies. The approach mirrors recent solar projects in India, where policy design encourages local participation but tests developers’ ability to sustain margins across dispersed sites.
8With tariffs capped and obligations stretched over 25 years, the tender reflects a challenging but strategic phase in solar projects in India, signaling a deeper shift towards decentralized, utility-led growth in renewables.
Facilitation - mode push to fast-track high-voltage corridor stretch
8A manpower-focused package under Indian power projects targets a critical 12 km chainage in a 765 kV interstate link under Power Grid’s WR-1 plan, aiming to synchronise delayed sections through expedited tower erection and stringing.
8The WR-1 segment of a 765 kV double-circuit line gets a dedicated execution package where contractors, under Indian power projects, work in facilitation mode to speed up lattice tower assembly and conductor stringing.
8A high-voltage transmission stretch under WR-1 follows a manpower-driven execution model designed to bring the chainage in line with adjoining completed sections, reflecting the urgency often seen in large Indian power projects.
8Unlike earlier full EPC scopes, this tender structure limits contractor responsibility to erection and stringing, with supply clearances and site readiness managed by the project owner a shift that highlights evolving facilitation practices in Indian power projects execution.
8Such facilitation-mode tenders are increasingly becoming part of Indian power projects strategy to overcome bottlenecks in critical high-voltage corridors.
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