SECI Issues RfS for 1200 MW Wind-Solar Hybrid Projects

SECI has issued the RfS document for setting up of combined 1200 MW wind-solar ISTS-connected hybrid power projects anywhere in India (Tranche – III).

The Solar Energy Corporation of India (SECI) has issued the Request for Selection (RfS) document for the selection of project developers for setting up of combined 1200 MW wind-solar ISTS-connected hybrid power projects anywhere in India (Tranche – III).

Recently, we had reported that the Ministry of New and Renewable Energy (MNRE) has issued the draft guidelines for “Tariff Based Competitive Bidding Process for Procurement of Power From Grid Connected Wind Solar Hybrid Projects” under the National Wind-Solar Hybrid Policy. The Guidelines provide a framework for the promotion of large grid-connected wind-solar PV hybrid systems for optimal and efficient utilisation of transmission infrastructure and land, reducing the variability in renewable power generation and achieving better grid stability.

As per SECI, this RfS document has been prepared in line with the draft guidelines and its subsequent final version as issued by MNRE, including further amendments and clarifications. SECI has been designated as Trader for purchase and sale of power from such projects. SECI shall enter into Power Purchase Agreement (PPA) with the successful bidders selected based on this RfS and Power Sale Agreement with the interested Buying Entities.

Hybrid Project Developers (HPDs) selected by SECI based on this RfS, shall set up Wind-Solar Hybrid Power Projects on Build-Own-Operate (BOO) basis in accordance with the provisions of this RfS document and standard Power Purchase Agreement (PPA)

SECI shall enter into PPA with the selected HPDs for a period of 25 years from the date as per the provisions of PPA. The maximum tariff payable to each HPD is fixed at Rs 2.88/kWh for the entire term of 25 years. The bidders will be free to avail fiscal incentives like Accelerated Depreciation, Concessional Custom Duties, Tax Holidays, etc. available for such projects as per prevailing conditions.

Under the RfS, the minimum bid capacity shall be 50 MW, with at least 50 MW of project capacity being proposed at each Project site, and maximum bid capacity under the RfS shall be 1200 MW.

And, Buying Entities and bulk consumers which require wind-solar hybrid power to fulfill their solar and non-solar RPO under respective RPO regulations will be eligible to buy wind-solar hybrid power under this scheme. SECI shall sign PPAs with the HPDs at the respective tariffs discovered after e-reverse auction and back-to-back Power Sale Agreements (PSAs) with the Buying Entities at a pooled price of the total capacity allotted. The duration of the PPAs and PSAs shall be 25 years from the Commercial Operation Date of the Projects.

SECI has clarified that a Hybrid Power Project shall mean a Project comprising two ‘components’ – one Solar and one Wind Power Project. The rated installed Project capacity of either of the components shall be more than 25 percent of the rated installed capacity of the other component. For eg, if a single Hybrid Project Capacity comprises 200 MW of rated installed Wind Power capacity, the minimum rated installed project capacity for the corresponding Solar Project component shall be 50 MW.

To be eligible, the Net Worth of the Bidder should be equal to or greater than Rs 1 crore per MW of the quoted capacity, as on the last date of previous Financial Year 2018-19, or as on the date at least 7 days prior to the due date of bid submission. And should have a minimum annual turnover of Rs 75 lakhs/MW of the quoted capacity during the same period.

The last date for bid submission is October 29, 2020, and the techno-commercial bids will be opened on November 4, 2020. (Dates not confirmed)

The estimated cost of the tendered projects is Rs 60 crore and all bidders will be required to submit an Earnest Money Deposit of Rs 5 lakh/MW quoted capacity along with their bids.