NHPC has invited bids for setting up  1.2 GW Inter-State Transmission System (ISTS)-connected solar power projects with a 600 MW/12,000 MWh energy storage system (ESS) and an additional greenshoe option up to 1.2 GW.

The last date to submit bids is October 18, 2024. Bids will be opened on October 21.

The project should be completed within 24-30 months from signing the power purchase agreement (PPA).

The solar projects will be implemented on a build-own-operate basis.

Bidders must pay a processing fee ranging from ₹300,000 (~$3,593.73) to ₹3 million (~$35,937) for capacities between 50 MW and 500 MW.

They must furnish a bid security of ₹942,000 (~$11,284.3) x rated cumulative installed capacity of solar component (MW) + ₹682,000 (~$8,169.75) x rated cumulative installed capacity of the ESS component (MW), subject to a maximum of ₹100 million (~$1.9 million).

The minimum project size will be 50 MW (with a minimum ESS component of 25 MW/50 MWh) and in multiples of 10 MW. The cumulative capacity must not exceed 600 MW (with a minimum ESS component of 300 MW/600 MWh) without the greenshoe option and 1,200 MW with the greenshoe option.

However, for projects in the northeastern states and Special Categories, bidders can quote a minimum of 30 MW (with a minimum ESS component of 15 MW/30 MWh).

NHPC will purchase and sell the solar power to the state utilities and others. An ESS of at least 0.5 MW/1 MWh capacity for 1 MW contracted capacity will be installed as part of the project.

NHPC will enter into a PPA with the selected bidders for 25 years. Bidders must quote a single tariff for the entire project’s capacity.

The project is technology agnostic, and solar panels can be installed using crystalline silicon, thin film, or concentrated photovoltaic with or without trackers.

There will be no Central Financial Assistance to implement the project.

Bidders must have a net worth of at least ₹12.9 million (~$154,530) /MW of the project capacity in the previous financial year.

They must have an annual turnover of ₹6.45 million (~477,265)/MW of the quoted capacity in the previous financial year.

They must have an internal resource generation capability of profit before depreciation, interest, and taxes of at least ₹1.29 million (~$15,453)/MW of the quoted capacity in the previous financial year.

Bidder must submit an in-principle sanction letter from the lending institutions/banks of the bidder, committing a line of credit for a minimum of ₹1.61 million (~419,286)/MW of the quoted capacity towards meeting the working capital requirement of the project mentioned.

The projects must have a minimum capacity utilization factor (CUF) within 10% and -15% of the declared value until the end of ten years from the commercial operation date for the supply of power in non-peak hours and within 10%) and -20% of the declared value of the annual CUF after that until the end of the PPA.

Solar power generators can also source up to 5% renewable energy power annually from green market sources/bilateral agreements.

In May 2024, NHPC invited bids for the engineering, procurement, and construction of a 200 MW grid-connected solar power project to be set up in Gujarat State Electricity Corporation’s renewable energy park at Khavda (GSECL Stage-3).

NHPC also invited bids to select developers to set up 1.2 GW interstate transmission system ISTS-connected solar power projects anywhere in India.