MSEDCL Issues Tenders for 800 MW Wind Projects

The Maharashtra State Electricity Distribution Company (MSEDCL) has recently issued two requests for selection (RfS) to procure 500 MW of wind power from intra-state wind power projects and 300 MW of wind power from new grid-connected inter-state and intra-state wind projects.

In total, MSEDCL will procure 800 MW wind power on a long-term basis through competitive bidding processes, followed by reverse e-auctions. The discom has issued these tenders to fulfil its non-solar renewable purchase obligation (RPOs) and meet its future power requirements.

The deadline to respond to the RfS for the 500 MW tender is September 13, 2021, at 4 p.m. MSEDCL will enter into Power Purchase Agreements (PPAs) with selected bidders for a period of 12 years from the date of the PPA’s execution or from the date of the expiry of the EPA for existing wind power projects. The tariff payable will be fixed for 12 years as discovered through the e-bidding and e-reverse auction. The intra-state projects that are already supplying power to MSEDCL under an existing EPA which has already expired or is going to expire on or before March 31 2022 will be eligible to participate in the bidding process. Wind power projects having an individual size of 0.50 MW and above at one site with a minimum bid capacity of 0.50 MW can apply.

The successful bidder will be responsible for the operation & maintenance of the transmission/ distribution network up to the delivery point at its own cost and in accordance to the RfS provisions. In order to ensure that only quality systems are installed, the type certified wind turbine models listed in Revised List of Models and Manufactures (RLMM) will be allowed in case of repowering of WTG only. Net worth and liquidity are not specified under eligibility qualifications. Before the signing of the PPA between MSEDCL and the selected bidders, MSEDCL will verify the documents furnished by the bidders at the time of the submission of responses to the RfS, including the shareholding of the project company, along with a copy of complete documentary evidence supported with the original documents. The full details of the RfS document can be accessed here.

The deadline to respond to the RfS for the 300 MW tender is September 20, 2021, at 4 p.m. MSEDCL will enter into PPAs with the selected bidders for the purchase of wind power for a period of 25 years from the commercial operation date of the projects. The tariff payable to the selected bidders will be fixed for 25 years. Eligible projects should be new grid-connected inter-state and intra-state wind projects. Intra-state projects that are already commissioned but do not have any long-term PPA with any agency and selling power on short-term or merchant plant basis will, however, be considered. Intra-state projects must have an individual size of 5 MW and above at one site, with minimum bid capacity of 25 MW. Inter-state projects should have an individual size of 50 MW and above at one site, with minimum bid capacity of 50 MW.

In order to ensure that only quality systems are installed, only type certified wind turbine models, which are listed in RLMM, will be allowed. The net worth of the bidder for the financial year ended on March 31, 2021, should not be less than Rs.1.2 crores per MW (of the capacity quoted in bid). Bidders will have to furnish a certificate from chartered accountants/appropriate authority, certifying their net worth. The responsibility of getting grid connectivity with CTU/STU/ DISCOM will be entirely of the successful bidder and in their name. The successful bidder will submit documentary evidence for securing such connectivity within 7 months from the date of the signing of the PPA. The full details of the RfS document can be accessed here.

Just last week, MSEDCL issued a 478 MW tender for bids under component A of the KUSUM (Pradhan Mantri Kisan Urja Suraksha Evam Utthan Mahabhiyan) scheme that focusses on improving farmers’ incomes and generating solar power at scale. Moreover, last month, Tata Power (300 MW) and Azure Power (200 MW) won a 500 MW hybrid wind-solar tender from MSEDCL. The winning bidders came in with bids at Rs 2.62, a paisa lower than RenEw Power’s Rs 2.63 bid.