REC Limited's Subsidiary Floats 1,250 MW ISTS-Connected Solar Projects Tender

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REC Power Development and Consultancy (RECPDCL), a wholly-owned subsidiary of REC Limited, has invited bids to set up 1,250 MW of interstate transmission system (ISTS)-connected solar power projects (Tranche I) across India.

The projects aim to maintain flexibility in the generation and scheduling of thermal or hydropower stations through bundling with renewable energy and storage power.

The last date to submit the bids is December 26, 2022. Bids will be opened on December 29.

Bidders must submit ₹1.5 million (~$18,418) along with 18% GST as a bid processing fee for each project above 300 MW capacity.

The participants in the bid process must also submit ₹400,000 (~$4,911)/MW per project as an earnest money deposit.

The successful bidder will have to furnish ₹800,000 (~$9,823)/MW as a performance bank guarantee within seven days before the signing of the power purchase agreement (PPA).

The project must be commissioned within 18 months from the effective date of the PPA.

NTPC will enter into a PPA with the successful bidder for the purchase of solar power for 25 years.

For each project, the minimum project capacity will be 300 MW, and the maximum capacity will be 1,250 MW. The contracted capacity must be quoted in multiples of 50 MW only.

According to the terms of the bid, projects already commissioned will not be considered under this tender. However, projects under construction or not yet commissioned will be considered if they are not accepted under other central or state programs.

Only commercially established and operational technologies can be used to minimize the technology risk and achieve the projects’ timely commissioning.

The net worth of bidders should be equal to or greater than ₹8 million (~$98,230)/MW of the quoted capacity as of the last date of the previous financial year or at least seven days before the bid submission deadline.

The minimum turnover of bidders should be at least ₹4.145 million (~$50,896)/MW of the quoted capacity during the previous financial year or at least seven days before the bid submission deadline.

Additionally, bidders should have an internal resource generation capability in the form of profit before depreciation, interest, and taxes for a minimum of ₹830,000 (~$10,191)/MW of the quoted capacity as on the last day of the previous financial year.

They should also have an in-principle approval letter from lenders committing a Line of Credit for a minimum of ₹1.036 (~$12,721)/MW of the quoted capacity toward meeting the working capital requirement of the project.

The developer will be responsible for getting the ISTS connectivity.

The declared annual capacity utilization factor (CUF) should, in no case, be less than 22%. The developer will be responsible for installing solar panels and associated equipment necessary to achieve the required CUF.

The developer should maintain generation to achieve annual CUF within + 10% and -15% of the declared value till the end of ten years from the commercial operation date, subject to the annual CUF remaining minimum of 19% and within +10% and -20% of the declared value of the annual CUF after that until the end of 25 years.

Recently, RECPDCL invited bids to set up 500 MW of ISTS-connected solar power projects across the country.

Earlier, RECPDCL had issued four global tenders to build ISTS infrastructure on a build, own, operate, and transfer basis at Khavda pooling station under Phase II- (Part A-D) in Gujarat. The transmission infrastructure is to evacuate 18 GW of renewable energy.

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