Uttar Pradesh New and Renewable Energy Development Agency (UPNEDA) has invited bids for setting up 106 MW of grid-connected solar projects of 0.5 MW, 1 MW, and 2 MW capacity under Component A of the Pradhan Mantri Kisan Urja Suraksha evam Utthan Mahabhiyan (PM KUSUM) program.

Bids have been invited from farmers, cooperatives, panchayats, farmer producer organizations, water user associations, and project developers. The projects can be developed on barren lands, agricultural plots, pasturelands, and marshlands of farmers falling within the radius of 5 km from the selected 33/11 kV substations.

The project should be commissioned within 12 months from the date of the issuance of the letter of award.

The last date to submit the bids online is June 15, 2021, and bids will be opened on June 16.

The minimum individual project capacity to be developed at a particular substation is 500 kW, while the maximum individual project capacity to be developed at each substation has been capped at 2 MW per bidder.

The ceiling tariff for the tender has been set as ₹3.10 (~$0.042)/kWh.

The selected solar power generator will be responsible for constructing a dedicated 11 KV line from the solar power project to the substation, construction of bay, and related switchgear at a substation where the project will be connected to the grid.

Selected bidders will have to furnish a performance bank guarantee of ₹500,000 (~$6,790)/MW for the capacity awarded within 30 days of the issuance of the letter of award.

If the bidders concerned fail to arrange the equity needed to set up the projects, they may opt to erect the project through a developer by signing a land lease agreement. In such a case, the landowner will get lease rent on mutually agreed terms and conditions between the parties.

In the case of a developer setting up the project on the leased land, his net worth should not be less than ₹10 million (~$135,812)/MW of the quoted capacity.

As per the tender document, the cells and modules used in the projects should be sourced only from the models and manufacturers included in the ‘Approved List of Models and Manufacturers’ as issued by MNRE and updated as on the date of commissioning of the project.

In March this year, the Uttar Pradesh Electricity Regulatory Commission approved several deviations in the request for selection and power purchase agreement to procure power from the small capacity (0.5 MW to 2 MW) grid-connected solar power projects under Component-A of the KUSUM program.

Recently, in another project under Component A of the KUSUM program, the Odisha Renewable Energy Development Agency invited bids to select solar power generators to set up 500 MW of solar projects on a build, own, and operate basis.

According to Mercom’s India Solar Tender Tracker, tenders for 576 MW of solar projects have been floated in the country under Component-A of the PM KUSUM program by various organizations, including the Bangalore Electricity Supply Company Limited, Madhya Pradesh Urja Vikas Nigam Limited, and Meghalaya Power Distribution Corporation Limited, among others.