The National Hydroelectric Power Corporation’s (NHPC) tender for 2 GW of Interstate transmission systems (ISTS) connected solar projects has been oversubscribed by 1.78 GW.
The tender received bids from nine developers with individual bids ranging from 300 MW to 600 MW. Bids were received for a total of 3.78 GW.
The NHPC originally floated in September 2019. The tender stated that the projects could be set up anywhere in India. There is no maximum limit of projects a developer can bid for. Projects that have been commissioned, are under construction or projects which are not yet commissioned, cannot be considered under this tender. Further, enhancement and augmentation of commissioned projects, irrespective of their capacities, would not be allowed under this project. Modules for projects under this tender can be imported (open category).
Bidders were expected to quote a fixed levelized tariff for 25 years. Successful developers are mandated to meet a capacity utilization factor (CUF) of at least 19%. The projects are to be set up on a build-own-operate (BOO) basis on land that is identified and arranged by the solar power developers. NHPC had allowed a commissioning timeline of 18 months from the date of signing the power purchase agreement. The earnest money deposit (EMD) for this tender was set at ₹1 million (~$13,890)/MW.
The minimum tariff payable to the project was also revised to ₹2.78 (~$0.04)/kWh from ₹2.65 (~$0.037)/kWh. Initially, the NHPC had set a tariff ceiling of ₹2.95 (~$0.041)/kWh. But later, in October 2019, the ceiling tariff was revised to ₹2.65 (~$0.037)/kWh. The tariff will be applicable for 25 years.
Recently, the NHPC issued documents for enlisting engineering, procurement, and construction (EPC) vendors for floating and ground-mounted solar projects starting from 10 MW in size.
Image Credit: Hero Future Energies
Nithin is a staff reporter at Mercom India. Previously with Reuters News, he has covered oil, metals and agricultural commodity markets across global markets. He has also covered refinery and pipeline explosions, oil and gas leaks, Atlantic region hurricane developments, and other natural disasters. Nithin holds a Masters Degree in Applied Economics from Christ University, Bangalore and a Bachelor’s Degree in Commerce from Loyola College, Chennai. More articles from Nithin.