NREDCAP Issues Tender For Supply of Solar Power to Vijaywada Municipal Corporation


The New and Renewable Energy Development Corporation of Andhra Pradesh (NREDCAP) has tendered a grid-connected solar PV project to supply power under open access to the Vijaywada Municipal Corporation (VMC).

The project is expected to supply 1.2 Million Units (MUs) of solar power to VMC every month for a period of 25 years. The bid-submission deadline is February 8, 2018.

When asked about the development, a NREDCAP official said, “We have left it up to the bidders to decide the capacity of the project, and whether they will develop it at a single location or multiple locations. We know that different range of modules can produce different quantities of solar power, so the project size is also up to the bidders.

The projects can be developed in Krishna, Guntur or Prakasham districts of Andhra Pradesh. The projects will be developed on ‘build own operate’ basis, and the scope of work would include the supply, procurement, engineering, construction, installation, testing and commissioning of the grid-connected solar projects. The power generated from the solar power plant will then meet the pumping load requirement of the VMC.

The successful bidder will also set up the distribution/transmission network up to the interconnection point. The project completion time-frame is nine months from the date of signing of the Power Purchase Agreement (PPA).

The successful bidder would have to pay a fee of ₹5,00,000 (~$7,897) per MW (in AC terms) to NREDCAP for assistance in liaising with the government department for availing the open access and for facilitating the bid process. The Solar Power Developer (SPD) shall be responsible for the arrangement, transmission/ distribution and open access. This would also include obtaining the No Objection Certificates as well as other liaison works with all concerned statutory and non-statutory agencies.

The SPD shall also be responsible for the scheduling of power at both ends. Moreover, the SPD will also be accountable for liaising with appropriate authorities and for the payment of processing fees for executing the Banking and Wheeling Agreement (BWA).

The VMC will enter a PPA with the successful bidder for the purchase of solar power for a period of 25 years from the date of commissioning. The selected project developer is expected to supply 14.4 MUs of solar power every year.

Mercom previously reported, NREDCAP tendered 2.4 MW of solar rooftop to be developed under the Renewable Energy Service Company (RESCO) mode in Andhra Pradesh.

In September 2017, Mercom reported that the Central Electricity Regulatory Commission (CERC) has set the National Average Power Purchase Cost (APPC) at ₹3.48 (~$0.0542)/kWh, barring a few states for open access.

Image credit: Amplus Solar

Saumy Prateek Saumy is a senior staff reporter with covering business and energy news since 2016. Prior to Mercom, Saumy was a copy editor at Thomson Reuters. Saumy earned his Bachelors Degree in Journalism & Mass Communication from the Manipal Institute of Communication at Manipal University. More articles from Saumy Prateek.