Odisha Invites Bids for the Sale of 500 MW Solar Power with Greenshoe Option

The last date for the submission of bids is January 16, 2024


Grid Corporation of Odisha (GRIDCO) has invited bids from intra-state off-takers to buy 500 MW solar power through a tariff-based competitive bidding process with a greenshoe option.

The last date for the submission of bids is January 16, 2024. Bids will be opened on January 17.

GRIDCO foresees a significant increase in renewable energy (RE) power transactions by various entities in the coming years. Considering its planning for RE power procurement, there is a potential for GRIDCO to possess a reserve of 500 MW of solar power starting from the fiscal year 2025-26.

The additional reserve power is being made available by GRIDCO to diverse industries within the state through the tender.

The cost of the tender document is ₹11,800 (~$142), including 18% GST. Bidders have to submit ₹500,000 (~$6,012.7)/MW as an earnest money deposit.

The winning bidders must furnish a contract performance guarantee of ₹1 million (~$12,025)/MW. Within 30 days of receiving the Letter of Award, they must execute the power sale agreement (PSA) with GRIDCO.

Bidders must be capable of receiving power from GRIDCO at the delivery point from April 1, 2025, to March 31, 2030.

The minimum bid quantity is set at 10 MW, and the maximum is capped at 250 MW. The solar capacity mentioned in the tender document defines the power supply limited to solar hours exclusively.

GRIDCO aims to supply a minimum of 20% of the energy corresponding to the contracted capacity in a financial year. For example, if the contracted capacity is 200 MW, the minimum supply from GRIDCO will be around 350 MU (20% of 1752 MU, which corresponds to the contracted capacity).

Buyers procuring renewable energy power from GRIDCO can benefit from various exemptions, including a ₹0.50 (~$0.006)/unit exemption on electricity duty, a full exemption on cross-subsidy surcharge, a ₹0.20 (~$0.002)/unit exemption on state transmission utility charges, and a 25% exemption on wheeling charges.

The delivery point will be at GRIDCO’s periphery, involving the interconnection of the power injection point, which may be either interstate or intrastate.

Bidders must have a positive net worth as of the last date of the previous financial year and a minimum annual turnover of ₹30 million (~$360,704)/MW of the quoted capacity during the same financial year.

They must specify the quantity of solar capacity in MW required at the delivery point.

Bidders are responsible for covering applicable charges and losses, such as STU transmission charges and losses, state load dispatch center charges, wheeling charges and losses, and any other charges and losses beyond the delivery point.

They should also handle taxes, duties, and cess imposed by the central government/state government/local bodies. The tariff should remain constant without any escalation during the contract period.

The winning bidder is responsible for arranging open access for power offtake beyond the delivery point.

After shortlisting successful bidders up to the offered quantity, GRIDCO may offer additional capacity under the greenshoe option to willing buyers under the same terms and conditions at any time during the contract period.

The additional quantity offered is limited to 50% of the signed PSA of the procurer.

The Solar Energy Corporation of India signed a PSA with GRIDCO for 600 MW of wind power under Tranche XIII of the Inter-State Transmission System Connected Wind Power Projects program.

In February, SECI signed another PSA with GRIDCO for 400 MW of wind power from projects in Karnataka and Gujarat.

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