The Maharashtra State Electricity Distribution Company (MSEDCL) has issued requests for selection (RfS) to procure 500 MW wind power from intrastate wind power projects and 300 MW wind power from grid-connected new inter-state and intrastate wind projects.
MSEDCL has floated the tenders to fulfill its non-solar renewable purchase obligation (RPOs) and meet its future power requirements. In 2019, the Maharashtra Electricity Regulatory Commission (MERC) had asked MSEDCL to fulfill its non-solar RPO by procuring wind energy from projects whose energy purchase agreements (EPAs) have expired.
500 MW Wind Power Procurement
The selection of projects will be carried out through e-bidding followed by an e-reverse auction process.
The last date for submission of bids is September 13, 2021. The ceiling tariff has been set at ₹2.65 (~$0.036)/kWh. Bidders are expected to pay ₹25,000 (~$336.71) towards the RfS document cost and ₹10,000 (~$136.68) as the processing fee.
Bidders must also submit ₹500,000 (~$6,734)/MW/project as earnest money deposit (EMD) in the form of a bank guarantee along with the RfS.
Intrastate projects that are already supplying power to MSEDCL under an existing EPA, which has expired or will expire on or before March 31, 2022, are eligible to participate in the bidding process.
The selection of projects would be technology agnostic. Only certified wind turbine models listed in the ‘revised list of models and manufacturers’ (RLMM) will be allowed to repower wind turbine generators.
The successful bidder must install the real-time data visibility system as per the norms and conditions of the State Load Dispatch Centre (SLDC), Kalwa, within six months of executing the PPA with MSEDCL. The successful bidder must also comply with MERC regulations on forecasting, scheduling, and deviation settlement and are responsible for all liabilities related to connectivity.
300 MW Wind Power Procurement
The last date to submit the 300 MW wind power tender bids is September 20, 2021. Bidders are expected to pay ₹25,000 (~$336.71) towards the RfS document cost and ₹300,000 (~$4,044.29) as the processing fee.
Bidders must also submit ₹600,000 (~$8,088.58)/MW/project as earnest money deposit (EMD) in the form of a bank guarantee along with the RfS.
The selection will be carried out through e-bidding followed by an e-reverse auction process. For intrastate projects, wind power projects must have an individual size of 5 MW and above at one site with a minimum bid capacity of 25 MW.
For inter-state projects, the wind power projects must have an individual size of 50 MW and above at one site with a minimum bid capacity of 50 MW.
Grid-connected inter-state and intrastate and new wind projects are eligible to participate in the tender. The selection of projects would be technology agnostic and as per the RLMM.
Intrastate projects that are already commissioned but do not have any long-term PPA with any agency and are selling power on a short-term or merchant plant basis will be considered in case these projects are not already accepted under any other central or state programs and do not have any obligations towards existing buyers.
The net worth of the bidder for the financial year ended on March 31, 2021, must not be less than ₹12 million (~$161,778)/MW of the quoted capacity.
The bidder must have a minimum annual turnover of ₹2.5 million (~$33,704)/MW of the quoted capacity during the FY 2020-21.
Before depreciation interest and taxes, the bidder’s profit must be at least ₹1 million (~$13,482)/MW of the quoted capacity for FY 2022-21.
Foreign companies registered as companies as per the rules of their country of origin are eligible to participate. They can participate on a standalone basis or as a consortium member at the RfS stage.
If a foreign company participates on a standalone basis and wins the bid, it will have to form an Indian company as its fully owned subsidiary company before signing the PPA.
Common Clauses for 500 MW and 300 MW RfS
Successful bidders would supply power from their projects based on the terms of the new PPA from the date of the new PPA or after the expiry of the existing EPA, whichever is earlier.
The successful bidder is responsible for operating and maintaining the transmission network up to the delivery point and bear the cost. All approvals, permits, and clearances required for operating the project (including connectivity) and those required from government and local bodies are part of the scope.
The bidder must be incorporated in India under the Companies Act 1956, or the Companies Act, 2013, or the Co-operative Societies Act, 1912. The bidder must be a wind power generator with an EPA with MSEDCL that has expired or will expire in FY 2021-22.
Before signing the PPA, a successful bidder may also execute the project through a special purpose vehicle, i.e., a project company incorporated as a fully owned subsidiary company.
If the successful bidder is a consortium, it must incorporate a project company or an SPV with equity participation by the members in line with the consortium agreement before signing the PPA with MSEDCL.
Limited liability companies are also eligible to participate. If selected as successful bidders, the LLC must register as a company under the Indian Companies Act, 1956 of Companies Act, 2013, as applicable, before signing the PPA while keeping the original shareholding of the LLC unchanged.
A bidder, including its parent, affiliate, or ultimate parent or any group company, can only submit a single application or bid for a single or multiple project location, subject to minimum bidding capacity.
Multiple bids from the same project from the same company, including its parent or ultimate parent or affiliates or group companies, would invalidate all the bids submitted by the group.
Recently, Tata Power and Azure Power were declared winners in MSEDCL’s auction to procure power from 500 MW of from grid-connected interstate and intrastate wind-solar hybrid projects on a long-term basis.
Rahul is a staff reporter at Mercom India. Before entering the world of renewables, Rahul was head of the Gujarat bureau for The Quint. He has also worked for DNA Ahmedabad and Ahmedabad Mirror. Hailing from a banking and finance background, Rahul has also worked for JP Morgan Chase and State Bank of India. More articles from Rahul Nair.