Madhya Pradesh Invites Bids to Procure 500 MW Energy Storage Capacity
The last date for the submission of bids is November 6, 2023
M.P. Power Management Company, Jabalpur (MPPMCL) has invited tenders for the procurement of 500 MW energy storage capacity for six hours of discharge with a maximum of four hours of continuous discharge for 40 years from Inter-State Transmission System (ISTS)-connected pumped hydro storage projects through competitive bidding.
The projects have to be developed under a “Build-Own-Operate-Maintain” (BOOM) basis from the projects commissioned or to be developed anywhere in India.
The last date for the submission of bids is November 6, 2023. Bids will be opened on the same day.
Bidders have to pay ₹10,000 (~$120) plus GST @18% each as cost of tender and cost of application fee.
Bidders have to submit ₹500,000 (~$6,006.7)/MW as an earnest money deposit.
The selected bidders must provide a performance bank guarantee worth ₹1.2 million (~$14,417)/MW within 21 days of receiving the letter of award.
Bidders are required to provide a minimum capacity of 100 MW from a single site.
For multiple locations, a bidder may submit bids for projects at different places with the following conditions:
- Each location must have a minimum capacity of 100 MW.
- A single-price bid should be submitted for all these locations.
Bids can be placed for a maximum capacity of 500 MW.
If multiple bids are submitted by the same company, including its parent, ultimate parent, affiliates, or group companies, all the bids from the group will be considered invalid.
The location of the pumped hydro storage projects can be anywhere in India.
Projects initiated or commissioned after March 8, 2019, at the inception stage, projects under construction, and projects that have not yet been commissioned will be taken into consideration.
However, this is subject to the condition that these projects have not already been approved or included in any other central or state programs and do not have any existing obligations.
The projects must be commissioned within a 72-month or 6-year period starting from the date of signing the Pumped Hydro Storage Power Procurement Agreement (PHSPPA).
The maximum time for the full project commissioning is capped at ten years from the date of signing the agreement, as specified in the PHSPPA.
Only commercially established and operational technologies must be used to minimize technology-related risks and to ensure the Projects are commissioned on time.
Bidders who have successfully executed EPC or construction projects in the field of infrastructure, including power, hydroelectric, water body projects, dams, metro, roads, reservoirs, and tunnels with a total project cost equal to or greater than the amount calculated at a rate of ₹20 million (~$240,255)/MW for the quoted capacity, are eligible.
The net worth of the bidders as of the last day of the financial year 2022-23 must be at least 100% of the bidders’ paid-up share capital, with a minimum of ₹15 million (~$180,220)/MW, based on the total capacity quoted by the bidders.
In May, Madhya Pradesh released guidelines to promote the development of pumped hydro storage projects, clarifying the procedure for allotment of project sites, tax waivers, and project completion timelines.
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