1.2 GW Wind Tender With ISTS From SECI. MP To Be Key Power Buyer

Large tenders for renewable energy have returned after a short gap, this time with a Wind tender. The Solar Energy Corporation of India (SECI) has issued a tender for setting up of 1,200 MW interstate transmission system (ISTS)-connected wind power projects (Tranche-XI). Projects can be located anywhere in India, although power procured by SECI from these projects will be sold to the Madhya Pradesh discoms.

Madhya Pradesh Power Management Company Limited (MPPMCL), is the designated agency for signing the power sale agreement (PSA’s) on behalf of the MP discoms.

The last date for bid submission is July 6, 2021, with bids to be opened on July 9. A pre-bid meeting has been scheduled for June 3.

Bids have been requested for a minimum capacity of 50 MW and a maximum of 1,200 MW. And in multiples of 10 MW. Thus, even a firm bidding for say, 10 MW, will be required to make at least 5 such bids in that case.

Land acquisition will be the developer’s responsibility. With ISTS connectivity, it does limit options in any case.

To encourage participation possibly, after declining interest in recent bids, the requirement for earnest money deposits have been done away. Only the performance bank guarantee of Rs 1.2 cr/MW remains, to be provided at least seven days before the signing of the power purchase agreement.

The annual capacity utilization factor (CUF) requirements are at 22% with generation that achieves annual CUF not less than 80% of the declared value and not more than 120% of the declared CUF value during the PPA tenure.

With domestic sourcing requirements as well as suppliers only from the Approved List of Manufacturers (ALMM) of the MNRE, it seems safe to predict that this project will also see bids that will be in the range of Rs 2.70 to Rs 2.90 even, depending on the final estimates of bidders. Prices we saw in the last big tender in March this year. We should know soon enough, July 9 to be precise.