Energy Efficiency Services Limited (EESL), a joint venture between the public-sector units of the Ministry of Power and the Government of India, has issued a tender to set up 100 MW of solar photovoltaic (PV) projects across Maharashtra, Andhra Pradesh, and Jharkhand. The bid submission deadline is July 8, 2019.
This is the third tender that has been released by EESL in response to an advisory issued by the Ministry of New and Renewable Energy (MNRE) in July 2017 that addressed the utilization of empty land near pooling substations to allow for better usage of the transmission infrastructure.
After this announcement in 2017, EESL had tendered and auctioned 200 MW of solar PV to be developed near pooling substations in the state.
Then in December 2018, EESL floated a tender for 160 MW of solar PV projects to be developed near pooling substations across the state of Maharashtra.
According to the current tender, the solar PV projects will be set up at various substations, and EESL has mandated that a single solar PV project will be of minimum 500 kW capacity and a maximum of 2 MW capacity.
The projects will be developed on a turnkey basis, and the scope of work includes the design, supply, erection, testing, and commissioning of the solar PV projects. The successful bidder will also provide operation and maintenance services for 25 years.
According to EESL, the successful bidder will have to guarantee a minimum annual energy generation of 766,500 kWh for a 500 kW solar PV project; 1,533,000 kWh for a 1 MW solar PV project; 2,299,500 kWh for a 1.5 MW solar PV project, and 3,066,000 kWh for a 2 MW solar PV project.
In case of excess generation, the successful bidder will receive an incentive equivalent to the number of units (in kWh) extra multiplied by ₹1 (~$0.014)/kWh. In case of shortfall in the generation, the successful bidder will pay a penalty equivalent to 1.5 times the units of shortage multiplied by the tariff at which the power purchase agreement (PPA) will be signed between EESL and the distribution company.
The project completion timeline is 120 days from the date of award of contract.
Saumy is a senior staff reporter with MercomIndia.com covering business and energy news since 2016. Prior to Mercom, Saumy was a copy editor at Thomson Reuters. Saumy earned his Bachelors Degree in Journalism & Mass Communication from the Manipal Institute of Communication at Manipal University. More articles from Saumy Prateek.