Ministry Issues Formula to Compute Impact on Power Tariff due to 'Change in Law' Event

The Solar Energy Corporation of India (SECI) has invited bids for setting up 1,200 MW of interstate transmission system (ISIS)-connected wind-solar hybrid power projects (Tranche-V) across India.

The last date to submit the bids is December 6, 2021, and bids will be opened on December 8.

For each project, the minimum project capacity should be 50 MW. The total capacity projects to be allocated to a bidder would be limited to 1,200 MW.

Interested bidders will have to furnish an amount of ₹1.146 million (~$15,302) as a performance bank guarantee at least seven days before signing the power purchase agreement (PPA).

The scheduled commissioning date for commissioning the project’s total capacity should be the date as on 18 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.

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 shall be at least 33% of the contracted capacity.

The declared annual capacity utilization factor (CUF) should, in no case, be less than 30%. The developer should maintain energy supply to achieve 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.

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.

To ensure only quality systems are installed, only wind turbine models listed in the Revised List of Models and Manufacturers issued by the Ministry of New and Renewable Energy as updated as on the date of commissioning of the projects will be allowed for deployment.

The bidders are advised to take cognizance of the imposition of Basic Customs Duty (BCD) on solar cells and modules while preparing their response to this RfS.

The bidder’s net worth should be at least ₹11.46 million (~$153,029)/MW of the quoted capacity as of the last day of the previous financial year.

The bidder’s minimum annual turnover should be at least ₹6.154 million (~$82,176)/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 ₹1.231 million (~$16,438)/ 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 ₹1.538 million (~$20,537)/MW of the quoted capacity.

In August this year, NTPC, NLC India, Project Ten Renewable Power (Ayana Renewable Power), and Azure Power were declared winners in SECI’s auction for 1,200 MW ISTS-connected wind-solar hybrid power projects (Tranche-IV) on a build, own, and operate basis across India.

Last December, three companies had won 1.2 GW of solar-wind hybrid projects quoting a tariff of ₹2.41 (~$0.0326)/kWh – the lowest-ever for solar-wind hybrid projects. The tariff was discovered in the SECI’s auction for setting up 1.2 GW of interstate transmission-connected wind-solar hybrid power projects under Tranche III of the ISTS program.

According to Mercom’s India Solar Tender Tracker, SECI has issued a total of  3.6 GW of wind-solar hybrid tenders under Tranche – I, II & III, out of which 2.76 GW of capacity has been auctioned.