SECI Floats Tender for 1.2 GW of ISTS-Connected Wind-Solar Hybrid Projects

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The Solar Energy Corporation of India (SECI) has invited bids for setting up 1,200 MW of interstate transmission system (ISTS)-connected wind-solar hybrid power projects (Tranche-VI) with energy storage and assured peak power supply across India.

The last date to submit the bids is December 12, 2022. Bids will be opened on December 15.

The cost of the bidding documents is ₹29,500 (~$356). The bid processing fee for projects from 50 MW to 99 MW is ₹500,000 (~$6,036), and for projects of 100 MW and above capacities, it is ₹1.5 million (~$18,108).

Interested bidders will have to furnish an earnest money deposit of ₹1.22 million (~$14,728)/MW/project. Selected developers must remit an amount of ₹1.83 million (~$22,092)/MW/project as a performance bank guarantee before signing the power purchase agreement (PPA).

They must also submit a success charge of ₹100,000 (~$1,207)/MW and a payment security deposit of ₹500,000 (~$6,036)/MW.

The minimum capacity of each project should be 50 MW. The maximum capacity to be allocated to a bidder would be limited to 1,200 MW. A mandatory energy storage system of at least 100 MWh capacity for each 100 MW project capacity must be deployed as part of the project.

The projects must be commissioned within 24 months from the effective date of the PPA.

The hybrid projects must be designed for interconnection with the transmission network of the central transmission utility at a voltage level of 220 kV or above. Although the selection of project locations is under the scope of the developer, in order to align project installations with augmentation of the necessary transmission and evacuation infrastructure, the choice of the delivery point for the projects will be limited to the substations listed by SECI, belonging to the ISTS network. The total seven listed substations are located in Andhra Pradesh (2), Madhya Pradesh (2), Karnataka (1), Maharashtra (1), and Tamil Nadu (1).

Under this tender, a hybrid power project will mean a project comprising two components – one solar and one wind power project. The rated installed project capacity of either of the two components should be at least 33% of the contracted capacity.

The declared annual capacity utilization factor (CUF) should, in no case, be less than 50%. The developer should maintain the energy supply to achieve an annual supply corresponding to CUF not less than 90% of the declared value and not more than 120% of the declared CUF value during the PPA duration of 25 years.

In the case of excess energy generation, more than the limit corresponding to the maximum annual CUF, the developer will not be allowed to sell it to any entity other than SECI, unless refused by them. SECI will purchase the excess energy at 75% of the PPA tariff.

As part of the total energy supplied from the project, the developer must mandatorily supply energy corresponding to a maximum amount of 2,000 kWh per MW of the contracted capacity, on daily basis, during peak hours, as per the schedule provided by the buying entity.

The buying entity is not mandated to off-take the stored energy on a daily basis and may choose to schedule peak power supply as per its requirement.

Under the request for selection (RfS) provisions, SECI has proposed to promote only commercially established and operational technologies to minimize the technology risk and achieve timely commissioning of the projects.

Only wind turbine models listed in the Revised List of Models and Manufacturers and modules registered in the Approved List of Models and Manufacturers issued by the Ministry of New and Renewable Energy (MNRE) will be allowed for deployment.

The bidder’s net worth should be at least ₹12.26 million (~$148,005)/MW of the quoted capacity as of the last day of the previous financial year.

Their minimum annual turnover should be at least ₹11.08 million (~$133,764)/MW of the quoted capacity during the last financial year. In the form of profit before depreciation, interest, and taxes, the bidder’s internal resource generation capacity should be at least ₹2.22 million (~$26,801)/ MW of the quoted capacity, as on the last date of the previous financial year. The bidder should have an approval letter from the lending institution committing a line of credit for a minimum value of ₹2.77 million (~$33,441)/MW of the quoted capacity.

SECI’s innovative tenders play a significant role in mitigating the risk of power offtake by DISCOMs across the country. The agency is also focused on clearing the power sale agreements for the previously issued tenders.

In September this year, the agency invited bids for the supply of 2.25 GW of round-the-clock (RTC) power from ISTS-connected renewable power projects complemented with power from any other source or storage in India.

In a recently published auction for SECI’s 1,200 MW interstate ISTS-connected wind-solar hybrid projects (Tranche-V), Tata Power, Amp Energy, NTPC, and SJVN were declared winners.

According to Mercom’s India Solar Tender Tracker, SECI has issued a total of  5.52 GW of wind-solar hybrid tenders under Tranche – I, II & III, IV, and V out of which the entire capacity has been auctioned.