The Uttar Pradesh Power Corporation Limited (UPPCL) issued a tender for a 20 MW (± 25%) slop-based power project in the state.

Slop, also known as Vinasse, is an acidic effluent from the fermentation of sugarcane molasses in distilleries.

Interested bidders are expected to make an earnest money deposit (EMD) of ₹100,000 (~$1,336)/MW. The last date for bid submission is September 15, 2020.

The tender was announced with a ceiling tariff of ₹2.899 (~$0.039)/kWh (50% of the tariff to be treated as variable cost). Successful bidders will be shortlisted on September 30, 2020. A power purchase agreement (PPA) will be signed between the UPPCL and the selected bidder for ten years. The minimum capacity to be offered in the bid is 2 MW.

To be eligible to take part in the competitive bidding process, the bidding company’s net worth should at least be equal to the value calculated at the rate of ₹5 million (~$66,810)/MW of capacity offered. The net worth must be based on the unconsolidated audited annual accounts of any of the last three financial years.

Earlier this year, the Uttar Pradesh Electricity Regulatory Commission (UPERC) had dismissed a petition filed by the Uttar Pradesh Power Corporation Limited seeking to fulfill its renewable purchase obligation (RPO) target by procuring slop-based power. The request was mainly rejected because, currently, the central government does not have guidelines in place for procuring slop-based power. The Commission, however, approved UPPCL’s proposed fuel mix with a maximum of 40% bagasse with slop, and it stated that the minimum bid of 2 MW would be appropriate.

Previously, UPERC had approved the amended PPA for bagasse-based power signed between DSCL Sugar, Hariawan, and UPPCL. The Commission had also approved the tariff of ₹4.78 (~$0.067)/kWh in line with the amended PPA.