Railways Float Tender to Procure 695 MW Round-the-Clock Renewable Power
The last day to submit the bids is February 14, 2024
REMC Limited has invited bids to procure 695 MW of round-the-clock (RTC) power from grid-connected renewable energy projects with or without storage to operate in tandem with existing 500 MW Ircon Renewable Power (IRPL) and 195 MW Rewa Ultra Mega Solar (RUMSL) solar projects.
The proposed RTC power supply will include the existing supply from the IRPL and RUMSL solar projects. The selected project developer will only supply power for the time blocks where power is not available from these existing projects and fulfill the annual and time block availability.
Bidders must submit separate bids for the two tandem projects.
The last day to submit the bids is February 14, 2024. Bids will be opened on February 16.
Bidders must submit a bid processing fee of ₹1 million (~$12,044). They must also furnish an earnest money deposit of ₹980,000 (~$11,803)/ MW separately for each program.
Selected bidders must submit a performance bank guarantee of ₹2 million (~$24,089)/ MW at least seven working days prior to the signing of the power purchase agreement (PPA). They must also furnish ₹100,000 (~$1204)/ MW as success charges.
The minimum bid capacity for the IRPL project is 100 MW, and 50 MW for the RUMSL one. The projects’ annual availability for the initial four years is set at 75%, which increases to 85% for the remaining contract years. Time-block-wise availability requires a minimum project availability of 50% for the entire contract tenure.
Developers must acquire the land for the projects. Projects should be commissioned within 24 months of signing the PPA.
The tariff is expected to be mutually agreed upon by the parties involved, with the tariff for each year to be levelized based on a discounting factor of 7.7%.
To minimize technological risk and ensure timely commissioning, only commercially established and operational technologies should be employed for these projects.
If integrated, energy storage systems (ESS) may be included as part of the project or linked separately with a third party by the developer. Importantly, ESS power supplied for this project must originate from renewable sources.
Eligible projects encompass those under construction, projects not yet commissioned, and projects that are already commissioned but lack long-term PPAs with any agency, instead selling power on a short-term or merchant plant basis. These considerations apply if the projects are not already accepted under any other government programs and do not have obligations toward existing buyers.
The renewable generation components and ESS installations can be located anywhere in India, including co-located or separate locations. Various components of RTC power, such as solar, wind, hydro, and more, can be interconnected with the interstate transmission system (ISTS) network at different substations.
Bidders must exhibit a net worth equal to or exceeding ₹30 million (~$361,317)/ MW during the financial year immediately preceding the bid submission. A minimum annual turnover of ₹48 million (~$578,107) per MW during the last financial year is mandated.
The bidders’ internal resource generation capability, as represented by profit before depreciation, interest, taxes, and amortization, should amount to at least ₹9.6 million (~$115,621)/ MW during the previous financial year.
Bidders must possess an in-principle sanction letter from lending institutions, committing a line of credit for a minimum of ₹12 million (~$144,526)/ MW to fulfill the project’s working capital needs.
Bidders from countries sharing a land border with India are eligible to participate in this tender only if registered with the competent authority.
REMCL has mandated the use of solar modules listed in the Approved List of Models and Manufacturers and wind turbines listed in the Revised List of Models and Manufacturers for the projects.
In October, REMC invited bids to procure 750 MW of RTC power from grid-connected renewable projects with or without storage across India for 25 years.
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