MP Invites Bids for 270 MW Solar Projects Under PM KUSUM

The Madhya Pradesh Urja Vikas Nigam Limited (MPUVNL), has invited bids by issuing a Request for Proposal (RFP) for selecting solar power developers for implementation of approximately 270 MW of grid-connected solar PV projects.

This tender has been issued to set up solar PV projects of capacity 500 kW to 2 MW to sell solar power to MPPMCL (M.P. Power Management Company Limited) under component A of PM KUSUM at various locations in Madhya Pradesh. The central government has a target to set up 10 GW of decentralized ground-mounted grid-connected solar projects of individual project size of up to 2 MW, under Component A of the program.

The last date to submit the bids is June 21, 2021, while the last date to submit technical bids is June 23, 2021. A pre-bid meeting has been scheduled for May 31, 2021.

All the interested bidders have to pay Rs. 5,900 as a non-refundable Bid Processing Fee by paying which, a Bidder shall be eligible to bid for one or more Projects under this RFP. However, there is no bid security to be paid by any interested Bidder. Successful bidders will have to furnish Rs. 5 Lakh/MW for 12 months as the performance bank guarantee (PBG). This PBG will be returned to the power producer on successful commissioning of the solar power plant. The ceiling tariff for the project is ₹3.07/kWh as decided by Madhya Pradesh Electricity Regularity Commission (MPERC).

The technical bid opening to be held on June 23, 2021, while the financial bid opening will be held on June 30, 2021.

The scope of work includes Design, Engineering, Supply, construction, erection, Testing, and Commissioning including the construction of bay and related switchgear at sub-station. Total capacity connected to a single bay in a substation shall not exceed 5MW and the duration of the Power Purchase Agreement is 25 years from the Commercial Operation Date.

In a contract year, the procurer should not purchase any additional energy above the 23 percent capacity utilization factor (CUF) on an annual basis during the power purchase agreement (PPA) period at the PPA tariff of the year, according to the RfP document. However, the excess energy generated by the generator above 23 percent CUF may be obtained by the procurer at 75 percent of the tariff.

Solar PV plant of capacity 500 kW to 2 MW may be connected at 11 kV or above of a 33/ 11 kV substation and the selected bidder will be responsible for laying a dedicated 11 kV line, construction of bay and related switchgear at interconnecting sub-station where the plant is connected to the grid and metering is done at his own cost as per MPERC regulations.

To find themselves eligible, the bidders could participate as an individual or group of farmers, cooperative, panchayats, farmer producer organizations, or water user organizations setting up the project on their lands. If the bidders concerned fail to arrange the equity needed to set up the projects, they may opt to erect the project through a developer by signing a land lease agreement. In such a case, the landowner will get lease rent on mutually agreed terms and conditions between the parties.

The full tender document can be downloaded here.