SECI Announces Tender for 1,800 MW of Wind Projects with a Tariff Cap of ₹2.85/kWh

The Solar Energy Corporation of India (SECI) has come up with a tender for 1,800 MW of Inter-State Transmission System (ISTS) connected wind power projects under tranche VIII. The projects can be developed anywhere in India.

The wind projects will be developed on a build-own-operate basis.  The power purchase agreement will remain in effect for 25 years, and the power produced from the projects will be sold to SECI.

The RfS comes with a tariff cap of ₹2.85 (~$0.041)/kWh and an earnest money deposit (EMD) of ₹0.6 million (~$8,639)/MW.

SECI has mentioned that the broad objective is to facilitate non-windy states/ union territories to fulfill their non-solar RPO, and boost investment in the sector, thus achieving the goal of the government reaching 60 GW by 2022.

The minimum capacity a bidder can opt for has been set at 50 MW, and the maximum capacity of the bid has been restricted to 600 MW. The projects should be commissioned within 18 months from the effective date of the PPA.

To participate in this tender, the bidder must either be an Indian company registered under the Companies Act, 2013, a consortium of companies with the lead company member controlling at least 51% shareholding, or a special purpose vehicle (SPV), in case it is a foreign company. The SPV of the foreign company needs to be registered in India.

The recommended net worth of the bidder has been mentioned as ₹12.4 million (~$0.18 million) per MW of the quoted capacity for FY 2018-19 or 2017-18. Additionally, the turnover of the bidder has to be either ₹0.6 million (~$8,639)/MW of the quoted capacity in the two previous fiscals, or its PBDIT (profit before depreciation, interest, and taxes) has to be ₹1.2 million (~$17,279)/MW as on FY2018-19. There is also a third option for a bidder to be eligible, that is if it can obtain a requisite letter of credit from a bank for a minimum amount of ₹1.5 million ($21,598)/MW of the quoted capacity.

Earlier in February 2019, SECI had tendered for 1,200 MW of ISTS-connected wind power projects on a pan-India basis under tranche-VII, which had been undersubscribed by 50% due to difficulties in land procurement and the imposed tariff cap of ₹2.83 (~$0.041)/kWh.