The Solar Energy Corporation of India (SECI) has invited bids to set up an 8 MW grid-connected waste-to-energy project in Kanpur, Uttar Pradesh.
The last date to submit bids is February 10, 2022. Bids will be opened on February 15.
Bidders must furnish an earnest money deposit (EMD) of ₹1.8 million (~$24,220). The successful bidder must submit a performance bank guarantee of ₹3.6 million (~$48,440)/MW before signing the power purchase agreement (PPA).
The scope of work includes securing connectivity, approvals, installation, and interconnection of the project with the grid network to supply power to SECI. The successful bidder should also make storage arrangements for refuse-derived fuel (RDF) supplied by the Department of Urban Development or Urban Local Body for 45 days of plant operation.
SECI has proposed promoting only commercially established and operational waste-to-energy technologies to minimize the technology risk and achieve project commissioning on time. Therefore, bidders must provide information about RDF-based waste-to-energy projects, recycling and processing equipment, and machinery to be installed in the project.
Bidders should have a minimum annual turnover of ₹55 million (~$740,067)/MW for the quoted capacity in the last financial year. In the last financial year, their net worth should be equal to or higher than ₹18 million (~$242,225)/MW. Their internal resource generation capacity should be a minimum of ₹11 million (~$147,990)/MW in the previous financial year.
Bidders should also furnish an approval letter from lending institutions or banks committing a line of credit for a minimum of ₹13.75 million (~$185,001)/MW of the quoted capacity to meet the required working capital.
The successful bidder must commission the project within 18 months from the date of PPA. The bidder will also be liable to pay liquidated damages for the shortfall in performance if the project availability is less than 80% annually. The liquidated damages will be 200% of the cost of the shortfall in energy. It will be calculated at the applicable tariff payable during the year.
The project developer must install, operate and maintain the waste-to-energy project to supply power on a round-the-clock basis, keeping at least 80% availability annually.
The Urban Local Bodies (ULB)/ Department of Urban Development (DoUD) will ensure the supply of RDF for 300 days a year. If the ULB/DoUD cannot supply RDF for 300 days in a year and the project could not be operated (or is required to operate below 55% of PLF) due to the non-availability of committed RDF by ULB/DoUD, ULB/DoUD will pay ₹1 (~$0.0135)/kWh compensation to the project developer at 55% PLF (or to the extent of PLF lower than 55%). These provisions will not be applicable in the case of force majeure.
Last year, the Karnataka Power Corporation Limited (KPCL) floated a tender for an 11.5 MW waste-to-energy project at Bidadi in the Ramanagar district of the state.
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Harsh is a staff reporter at Mercom India. Previously with Indian Express, he has covered general interest stories. He holds a Masters Degree in Journalism from Symbiosis Institute of Media and Communication, Pune.