Vedanta Seeks Developers for a 100 MW Solar Project in Odisha

Vedanta Limited, a diversified natural resources company, has issued a request for proposal (RfP) to install 100 MW of solar projects in Jharsuguda district of Odisha.

The project follows a Build, Own, Operate, and Transfer (BOOT) model with an option to convert to captive mode. The solar project is to be located within and around its aluminum plant in Jharsuguda, on land owned by Vedanta. The land parcels will be provided free of cost by Vedanta to the successful bidders to be strictly used only for the solar project on the condition that the land will be handed over to Vedanta after completion of the tenure of the PPA. This project will help Vedanta meet its Renewable Power Purchase obligations (RPO).

The deadline for the submission of bids is March 18, 2020, while a pre-bid meeting has been scheduled for March 5, 2020.

Vedanta has stated that a tariff cap of ₹3 (~$0.04)/kWh will apply to the project.


Interested bidders need to pay a sum of ₹200,000 (~$2,754)/MW as the earnest money deposit (EMD). The period of completion of the solar project is six months from the date of the signing of the power purchase agreement (PPA). The successful bidder is required to construct a transmission line (33 kV) from the solar project to the delivery point at 33 kV at 400 kV switchyard.

The successful bidder has to create a project company for developing the project and would be under obligation to allow Vedanta to acquire 26% equity in such company at book value within one year of the project being commissioned for the entire contracted capacity to maintain the status of the project as captive plant under the law.

Vedanta Limited Jharsuguda shall be the sole owner for commercial and legal rights such as renewable energy certificates, green energy Certificates, and Clean Development MechanismClean Development Mechanism (CDM) benefits associated with the solar energy procured under the PPA and the contract signed with the successful bidder.

Interested bidders should have experience in the installation of at least 20 MW of project capacity in the last five years. As far as the financial eligibility criteria are concerned, the bidder should have a net worth of at least ₹1 billion (~$13.77 million) for 100 MW of capacity in the last three financial years (FY).

If the bidder intends to submit a bid for a lower capacity, they must have a net worth of ₹10 million (~$137,682)/MW of the bid capacity. The prospective bidder must have an annual financial turnover of ₹500 million (~$6.9 million) in any year during the last five years.

In January 2019, Mercom reported that Vedanta Limited invited expression of interest (EoI) for the procurement of solar power under short or medium-term basis from solar power generators, state electricity boards and utilities, independent power producers and traders.

Earlier, Mercom reported that Vedanta Limited was planning to develop a solar project with a minimum capacity of 20 MW and a maximum capacity of 50 MW for captive consumption in Rajasthan’s Barmer district.

 

Image credit: Salt River Project