The Tamil Nadu Cooperative Milk Producers’ Federation (TCMPF) has invited bids to procure 5 MW of power per day from solar or wind projects or as surplus power from generators through open access.

The procured power will be supplied to TCMPF’s metro dairies, product dairy, and dairy-cum-powder plants in Ammapalayam, Madurai Ice Cream plant and various district co-operative milk producer’s unions.

The selected developer will have to sign a ten-year power purchase agreement (PPA) with TCMPF, agreeing to supply at least 20,000 units of power per day to meet the contract demand of 30 MW per day and the annual consumption demand of 43.8 GWh.

The PPA duration will be extended by ten years with mutual consent.

The last date to submit the bids is January 28, 2024. Bids will be opened the following day.

The estimated value of the tender is ₹3.5 billion (~$42 million). Bidders must submit an earnest money deposit (EMD) of ₹200,000 (~$2,400).

The successful bidders will be required to sign an agreement and furnish a security deposit of ₹2.5 million (~$30,006), valid for 18 months, within 15 days of receiving the letter of award.

The firms located within Tamil Nadu having Udyam Registration Certificate or National Small Industries Corporation certificate, with respect to items manufactured by them for which tenders have been called for, will be granted exemption from payment of EMD.

The selected developer will be responsible for evacuating the generated power to the Tamil Nadu Generation and Distribution Corporation grid, which will then be supplied to TCMPF facilities.

The developer must complete the project and initiate the supply three months after receiving the purchase order.

TCMPF will be free to vary the capacities finally ordered and execute the work through the bidders to the extent of 25% of the requirements. It also reserves the right to execute PPAs with multiple bidders based on their offered capacities.

Bidders should be either developers who propose to set up a new solar project or owners and operators of existing solar, wind, or surplus power from producers’ projects.

They should have installed and commissioned at least 5 MW of solar/wind/any power generating project in the last five years, commissioned at least six months prior to the bid opening date.

Bidders should have an average annual sales turnover equal to the value of solar power quoted for the last three financial years.

TCMPF will pay the developer only the quoted tariffs plus any adjustments on account of the revision of intra-state open access charges for the energy supplied at the delivery point of various metro dairies as per the PPA.

TCMPF had floated a similar tender to procure 30 MW of power through an open access arrangement for five years.

In September 2022, it issued a tender to procure 20 GWh of solar power per year through open access projects for five years.