HPCL Invites Bids to Acquire Operational Renewable Energy Assets

The last date to submit the bids online is February 28, 2023


Government-owned oil and gas refiner Hindustan Petroleum Corporation (HPCL) has invited expressions of interest (EoIs) from renewable energy companies or asset owners having absolute ownership of their assets to sell their solar, wind, wind-solar hybrid assets with or without battery storage with a minimum capacity of 50 MW.

The last date to submit the bids online is February 28, 2023. Bids will be opened on the same day.

The renewable assets should be of a minimum 50 MW capacity located in a single state.

The successful bidder will have to furnish an amount equivalent to 10% of the value of materials supplied as a performance bank guarantee.

All the offered projects should have been in continuous operation for the last 12 months with a minimum of 95% project availability as of the bid submission date.

According to the tender document, the projects should have connectivity with the distribution company (DISCOM), state transmission utility (STU), or central transmission utility (CTU) substation.

The projects should have a power purchase agreement (PPA) with any state agency, central government agency, DISCOM, or commercial and industrial (C&I) customers, with the remaining life of the project being at least ten years from the date of bid submission.

If the testing and inspection at any stage by inspectors reveal the equipment, material, and workmanship do not comply with specifications and requirements, the same will be removed by the vendor at its own expense and risk within the time allowed by the corporation.

Preference will be given to Micro and Small Enterprises (MSEs). MSEs quotes within the price band of L1 + 15% shall be allowed to supply a portion of the requirement by matching the price of L1 if L1 is other than MSE.

In case of availability of more than one MSE within the price band of L1 + 15%, 25% of the tender value shall be shared equally amongst the eligible firms, subject to matching the L1 price.

HPCL has said that the projects should have only Class-I local and Class-II local supplied components. A Class-I local supplier is a supplier or service provider whose goods, services, or works offered for procurement have local content equal to or more than 50%. The local content requirement for a Class-II local supplier is between 20% and 50%.

Last June, HPCL invited bids from consultants to conduct a feasibility study for developing a 100-150 MW wind-solar hybrid project with a battery energy storage system on vacant land for captive use in Andhra Pradesh.

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