NTPC has floated a tender to procure 1,200 MW of firm and dispatchable power from interstate transmission system (ISTS)-connected renewable energy projects.

The last date for submission of bids is December 3, 2024.

The tender aims to procure round-the-clock renewable power with assured peak supply to meet the requirements of distribution companies and other procurers.

The tender has specified a minimum bid capacity of 50 MW, with a maximum allocation of 600 MW to a single bidder. Projects must be commissioned within 24 months of signing the 25-year power purchase agreement (PPA).

The selected renewable power generators will be required to supply contracted capacity with a minimum of 90% availability during peak hours.

Peak hours are defined as 2 hours in the morning between 5 AM and 11 AM and 2 hours in the evening between 5 PM and 11 PM.

The earnest money deposit (EMD) required from each bidder will be calculated based on the total installed capacity committed for each project component. The formula for EMD is as follows:

EMD = [₹1.16 million (~$14,000) x Rated Installed Capacity of Solar component (MW) quoted by the bidder + ₹1.39 million (~$17,000) x Rated Installed Capacity of Wind component (MW) quoted by the bidder + ₹480,000 (~$6,000) x Rated Installed Capacity of the Energy Storage System (ESS) component (MWh) quoted by the bidder]

Selected bidders must submit a performance bank guarantee (PBG) calculated using the following formula:

PBG = [₹2.9 million (~$35,000) x Rated Installed Capacity of Solar component (MW) quoted by the bidder + ₹3.47 million (~$42,000) x Rated Installed Capacity of Wind component (MW) quoted by the bidder + ₹1.2 million (~$15,000) x Rated Installed Capacity of the ESS component (MWh) quoted by the bidder].

Bidders are mandated to install ESS with a minimum capacity of 250 kWh per MW of contracted capacity. The projects must achieve a minimum annual capacity utilization factor of 40%.

The tender allows participation of operational projects without existing long-term PPAs as well as under-construction projects. Partial capacities from larger projects can also be offered.

NTPC will enter into power purchase agreements with the successful bidders and sign back-to-back power sale agreements with end procurers. The company has specified that PPAs will be signed only after finalizing PSAs for the awarded capacity.

Only commercially established and operational technologies must be used to minimize technology risk.

For wind projects, only type-certified wind turbine models listed in MNRE’s Revised List of Models and Manufacturers are allowed to be used.

Modules to be used in solar projects should be included in MNRE’s Approved List of Models and Manufacturers.

Bidders must have a net worth requirement of ₹11.58 million (~$139,000)/MW for the solar component, ₹13.86 million (~$166,000)/MW for the wind component, and ₹4.8 million (~$57,600)/MWh for the ESS component.

Bidders should have a minimum annual turnover of ₹19 million (~$228,000)/MW of quoted capacity and internal resource generation capability of ₹3.8 million (~$45,600)/MW.

In August 2024, NTPC REL invited bids for land and power evacuation packages to develop 1,000 MW solar power projects in Madhya Pradesh.

In the same month, NTPC REL was among the five winners of SJVN’s auction to establish up to 1.2 GW ISTS-connected solar projects.