UP Invites Bids For 75 MW Solar Projects

Uttar Pradesh has a new tender out, inviting bids to develop 75 MW of projects in the state. State owned Uttar Pradesh New and Renewable Energy Development Agency (UPNEDA) uploaded on the website the details of the Request for Selection {RfS} .

According to the RfS, “the projects will be developed in Makrecha village (25 MW), Banghauli (20 MW), and Tikar 1, Tikar 2 (30 MW) in the Jalaun district of Uttar Pradesh. The last date to submit the bids is May 31, 2022. It may be mentioned here that UPNEDA had invited bids in September 2021 to set up 200 MW of solar projects at three locations (150 MW) in Jalaun and Kanpur Dehat (50 MW) in the state.

Released on May 9, the RfS reads further that Lucknow Solar Power Development Corporation is the implementing agency for the solar park. Uttar Pradesh Power Corporation will enter into a power purchase agreement (PPA) on behalf of the distribution companies (DISCOMs) and purchase 75 MW for 25 years. The ceiling tariff for the tender has been mentioned in the document at ₹3 (~$0.04)/kWh for 25 years.

The bidders have been advised to read the order issued by the Ministry of New and Renewable Energy (MNRE) about the imposition of Basic Customs Duty on solar cells and modules. A bidder’s net worth should be at least ₹7 million on the last day of the previous financial year. A bidder will have to submit ₹800,000 as an earnest money deposit. The successful bidder will have to furnish ₹1.05 million within 30 days of the letter of intent or signing the PPA, whichever is earlier. UPNEDA has put emphasis on use of only commercially established and operational technologies to minimize the risk and commission the projects on time.

After submitting the proposal, the developer can revise the annual CUF only once in the first year of the operation. Afterwards, the CUF for the project should remain unchanged for the remaining term of the PPA. The declared annual CUF should not be less than 17%. The developer should maintain generation to achieve annual CUF within +10% and -15% of the declared value till the end of ten years from the commercial operation date. The annual CUF should be at a minimum of 15% and within +10% and -20% after ten years and until the PPA duration of 25 years.