The Power Company of Karnataka (PCKL) has invited bids to purchase 1,000 MW of energy for 8 hours daily from pumped hydro storage projects providing continuous 5-hour discharge.

The power purchase agreement (PPA) will be valid for 40 years. The projects must be commissioned within 36 months of signing the PPA.

The projects can be located anywhere in Karnataka.

The last day to submit the bids is March 12, 2023. Bids will be opened on the same day.

Bidders must furnish a bid security amount of ₹500,000 (~$6,063)/ MW. Selected bidders must furnish a performance bank guarantee of ₹1.2 million (~$14,552)/ MW within 30 days of issuance of the work order.

Bidders should have commissioned thermal and hydropower projects equivalent to quoted capacity. Bidders who can demonstrate experience of commissioning renewable energy projects with a cumulative capacity equivalent to 2.5 times the quoted capacity are also eligible.

Bidders must submit the necessary proof of water allocation from the appropriate agency.

They should have a net worth of not less than 100% of their paid-up share capital as of the last financial year. Their net worth must meet a minimum of ₹15 million (~$181,909)/ MW, proportional to their cumulative capacity quoted.

They must have a minimum annual turnover of ₹10 million (~$121,272)/ MW.

Bidders can quote for a single location with a capacity of 100 MW or for multiple locations, with each location having a minimum capacity of 100 MW.

Projects at various stages of development, including those in the inception stage, under construction, and not yet commissioned would be considered. Those already commissioned but selling power on a short-term or merchant plant basis without long-term agreements are also eligible.

The minimum capacity for the first part of commissioning at one project site will be 50% of the allocated project capacity or 100 MW, whichever is lower. In the case of early part-commissioning, PCKL may procure the power at 75% of the annual fixed cost on a pro-rata basis.

In case of delay in commissioning, the project’s performance bank guarantee amount will be encashed per day and proportionate to the balance capacity not commissioned.

Developers must arrange connectivity to the nearest state transmission utility substation at their own cost.

Last month, the Ministry of Power proposed supporting pumped hydro storage projects through concessional climate finance. Sovereign green bonds issued for mobilizing resources for green infrastructure may be deployed in developing these projects, which utilize renewable energy for charging.

The ministry had also issued an order waiving the inter-state transmission system charges on evacuation of electricity from new hydropower projects in the country.