The Solar Energy Corporation of India (SECI) has come up with a new tender for 2.5 GW of ISTS-connected wind power projects to be developed across the country.

The bid-submission deadline is August 7, 2018.

The projects will be developed on build own operate (BOO) basis. The successful bidders will enter into Power Purchase Agreements (PPAs) with SECI for a period of 25 years. A single bidder can bid for a minimum of 50 MW and maximum of 300 MW capacity.

The scope of work includes the setting up of the wind power projects as well as the transmission network up to the delivery point. Wind power projects are required to be designed for inter-connection with transmission network of central transmission utility (CTU) at voltage level of 220 kV or above.

All approvals, permits, and clearances required for the development and connectivity – including those required by state governments – have been made the responsibility of the project developer. The maintenance of the transmission system up to the interconnection point will also be the responsibility of the developer. This is a global tender but Limited Liability Partnerships (LLPs) are not eligible for participation.

The project developer must report tie-up of 100 percent of the financing arrangements for the project within seven months from the effective date of the PPA.

During the course of the PPA, if it is found that the developer has not been able to generate minimum energy in any given year corresponding to the lower limit of the Capacity Utilization Factor (CUF) declared, the developer will pay the compensation provided in the PPA, payable to SECI. The SECI can write off the penalty in case of grid non-availability for evacuation, which is beyond the control of the developer.

In case the availability is more than the maximum CUF specified, the generator can sell it to any other entity, but only if SECI refuses to procure. In case SECI purchases the excess generation over and above 10 percent of the declared annual CUF, the same will be done at 75 percent of the PPA tariff.

The time-frame for the commissioning of the project has been set at 18 months from the effective date of the PPA. A developer will be allowed a maximum of 27 months to commission the project.

Wind tariffs are gradually decreasing in the country. There is a high level of interest in ISTS-connected projects ever since the Ministry of Power issued an order stating that no interstate transmission charges and losses will be levied on solar and wind power projects commissioned up to March 31, 2022.

In the recently concluded SECI wind auction for 2 GW, the lowest (L1) tariff quoted by the bidders stood at ₹2.51 (~$0.0386)/kWh. The capacity was tendered by SECI in February 2018.

Image credit: Flickr