Madhya Pradesh Floats Tender for 30 MW of Rooftop Solar Projects Under RESCO Model
The last date for submitting bids is November 27, 2020
Madhya Pradesh Urja Vikas Nigam Limited (MPUVNL) has floated a request for proposal (RfS) for 30 MW of grid-connected rooftop solar projects under the Renewable Energy Service Company (RESCO) model to be installed at various locations in the state.
The RESCO model is a system where the developer owns the solar project, and the consumer only has to pay for the energy generated.
Interested bidders are expected to pay an earnest money deposit (EMD) of ₹24 million (~$326,383). The last date for submitting bids is November 27, 2020.
The scope of work includes the design, engineering, supply, financing, installation, testing, and commissioning of the projects. Selected bidders are also expected to provide comprehensive operation and maintenance services for 25 years.
Applicants are also expected to have a minimum net worth of ₹8 million (~$108,794)/MW of the projects undertaken. If applicants are consortia, then the net worth requirements must be fulfilled by the leader.
The MPUVNL also specified that bidders must ensure the projects adhere to the Approved List of Models and Manufacturers’ (ALMM) guidelines and only use models from enlisted manufacturers. The modules used in the projects must be made in India as well.
The tender noted that the developer would be required to submit a monthly progress report to the nodal agency until the project is successfully commissioned.
These projects will be eligible for concessional funding from the World Bank, made available through the State Bank of India, Asian Development Bank, Punjab National Bank, and the Indian Renewable Energy Department Agency.
In August as well, the MPVUNL issued an expression of interest to purchase power from RESCO solar rooftop projects installed with zero upfront investment.
A little earlier, it reduced the capacity of its earlier tender floated for 25 MW of grid-connected and off-grid rooftop solar projects. The capacity has now been cut down to 15 MW. Another modification in the tender is the removal of the domestic content requirement. The tender was initially issued in January 2020.
According to Mercom’s India Tender Tracker, Madhya Pradesh has floated tenders for about 230.5 MW of rooftop projects.
Interestingly, Madhya Pradesh has been able to get record-low tariffs for rooftop solar projects. Back in 2018, the state received unexpectedly low tariffs for 35 MW of RESCO rooftop solar systems. As reported previously by Mercom, AMP Solar India quoted the lowest tariff of ₹1.58 (~$ 0.022)/kWh. This was made possible through several refreshing changes and additions in the tender document.
Nithin Thomas is a staff reporter at Mercom India. Previously with Reuters News, he has covered oil, metals and agricultural commodity markets across global markets. He has also covered refinery and pipeline explosions, oil and gas leaks, Atlantic region hurricane developments, and other natural disasters. Nithin holds a Masters Degree in Applied Economics from Christ University, Bangalore and a Bachelor’s Degree in Commerce from Loyola College, Chennai. More articles from Nithin.