Bharat Heavy Electricals (BHEL) has invited bids from project developers to set up a 5 MW ground-mounted solar power project at its Ranipur facility in Haridwar on a build, own, operate, and maintain basis.

The scope of work includes developing, constructing, synchronizing, commissioning, operating, and maintaining the solar project. It also includes setting up the evacuation network up to the BHEL substation.

The selected bidder must sign a 25-year power purchase agreement (PPA) with BHEL.

The last date to submit the bids is February 6, 2024. Bids will be opened on the same day.

Bidders must submit an earnest money deposit of ₹3 million (~$36,087). The successful bidder must submit a performance bank guarantee (PBG) of ₹12.85 million (~$154,569) before signing the PPA or 21 days from receiving the letter of intent, whichever is earlier.

The project must be commissioned within six months from the effective PPA date. The tender does not allow for part commissioning of the project.

A delay in commissioning of up to one month will result in part PBG of ₹3 million (~$36,087) being encashed, proportionally calculated on a per-day basis. For any delay beyond one month and up to three months, BHEL will encash the remaining PBG of ₹9.85 million (~$118,482).

The declared annual Capacity Utilization Factor (CUF) must, in no case, be less than the CUF mentioned for each year by BHEL in the tender.

Any excess generation from the project will be sold directly to BHEL, and it will reserve the right to sell/use the surplus power at its end.

Bidders must have established ground-mounted solar power projects of capacity not less than 2.5 MW, with individual projects of capacities not less than 1 MW. They must also have experience operating and maintaining solar projects of 2.5 MW capacity over the last seven financial years. The solar projects must be commissioned and should be operating for not less than one year.

The net worth of the bidders must be equal to or greater than ₹51.4 million (~$618,268) as of the last date of the financial year 2022-23.

Bidders are required to demonstrate that they have sufficient means to manage the project fund requirements. They can do so by submitting proofs for either of the following – i) A minimum annual average turnover of ₹102.8 million (~$1.24 million) during the last three financial years; (ii) In principle sanction letter from lending institutions committing a line of credit for a minimum amount of ₹64.3 million (~$773,448), towards meeting the working capital requirement of the project.

In September 2023, BHEL invited bids to procure 90 million units (MUs) of round-the-clock renewable power per annum on a long-term basis. The procured power will be supplied to the ex-bus periphery at the company units located in Haridwar (54 MUs), Bhopal (12 MUs), Trichy (12 MUs), and Hyderabad (12 MUs) on a long-term basis.

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