Solar Energy Corporation of India (SECI) has invited bids to set up 1.2 GW of interstate transmission system (ISTS)-connected solar photovoltaic projects across India under Tranche XVI on a build, own, operate basis.

The last date to submit bids is July 12, 2024. Bids will be opened on July 18, 2024.

Bidders can quote for a minimum capacity of 50 MW and a maximum of 600 MW per project. The total tendered capacity will be allocated through competitive bidding followed by an electronic reverse auction to determine the lowest tariffs.

Successful bidders will sign 25-year power purchase agreements (PPA) with SECI to supply solar power at the quoted tariff.

Bidders must furnish a bid processing fee of ₹500,000 (~$6,000) plus taxes for each project from 50 MW up to 99 MW and ₹1.5 million (~$18,000) plus taxes for each project from 100 MW and above. They must also submit an earnest money deposit of ₹942,000 (~$11,200) per MW and a performance bank guarantee of ₹2.35 million (~$28,000) per MW.

The scope of work includes setting up the solar projects, including the transmission network up to the delivery point, identification of land, installation, ownership, and obtaining connectivity and approvals. The minimum voltage level for interconnection at the ISTS is 220 kV.

Companies, whether Indian or foreign, must meet a net-worth requirement of ₹942 million ($11.6 million) per MW of quoted capacity as of FY 2023-24 or seven days before bid submission. They must also demonstrate a minimum annual turnover of ₹383 million ($4.7 million) per MW or profit before depreciation, interest, and taxes of ₹76.6 million ($940,000) per MW.

Alternatively, bidders can provide a Line of Credit of at least ₹95.8 million ($1.17 million) per MW from lenders to meet the working capital requirements.

Foreign companies participating in the tender must form an Indian subsidiary with at least 51% shareholding before signing the PPA. Consortiums with one lead member company are also eligible to participate.

Bidders from a country with a land border with India are also eligible to bid.

SECI recently invited bids for the design, engineering, supply, construction, erection, testing, commissioning, and operation and maintenance of a 25 MW solar power project with a 20 MW/50 MWh battery energy storage system in Leh, Ladakh.

The company issued 14.6 GW of solar tenders in the financial year 2024, surpassing the Ministry of New and Renewable Energy’s target of 12.5 GW by 16.5%.