REC Issues Tender for 100 MW ISTS-Connected Wind Projects
The last date to submit the bids is August 22, 2023
REC Power Development and Consultancy (RECPDCL), a wholly owned subsidiary of REC Limited, has issued a request for selection (RfS) of wind project developers for setting up 100 MW of inter-state transmission system (ISTS) connected wind power projects in India.
The projects will be developed under the program for flexibility in the Generation and Scheduling of Thermal/ Hydropower Stations through bundling with Renewable Energy and Storage Power notified by the Ministry of Power and on a Build-Own-Operate basis.
Bidders must submit their offers for a minimum project capacity of 50 MW and a maximum of 100 MW. The offers must be quoted in multiples of 10 MW only.
The selected developers will also be responsible for setting up the dedicated transmission network up to the interconnection or delivery point at their own cost. The minimum voltage for the interconnection at the ISTS must be 220 kV.
The last date to submit the bids is August 22, 2023. Bids will be opened on August 25.
Bidders must submit a bid processing fee of ₹500,000 (~$6,078) + 18% GST for each project and an earnest money deposit of ₹1.326 million (~$16,119)/MW/project of the quoted capacity.
The successful bidder must submit a performance bank guarantee of ₹1.989 million (~$24,180) /MW of the allotted capacity seven days before signing the power purchase agreement (PPA).
They must also pay ₹100,000 (~$1,216) /MW/ project of the allotted capacity + 18% GST to RECPDCL towards administrative overheads as success charges.
The projects must be commissioned within 18 months of signing the PPA.
The selected developers must sign a 25-year PPA with Damodar Valley Corporation. The power procured by Damodar Valley Corporation from these projects will be utilized to replace thermal power through existing PPAs of the corporation with various DISCOMs.
If the thermal generator is unable to replace the thermal power, the wind power can be sold in Exchange by DVC as per the provisions of the flexibility program.
Already commissioned projects will not be considered under this tender. Projects under construction or not yet commissioned would be considered only if they are not accepted under other central or state programs.
Only commercially established and operational technologies can be used to minimize the technology risk and achieve timely commissioning of the projects. The wind turbine models used for the project must be listed in the Revised List of Models and Manufacturers issued by the Ministry of New and Renewable Energy.
The project’s declared capacity utilization factor must not be less than 22%. The project developer must maintain the generation so as to achieve an annual CUF of not less than 80% and not more than 120% of the declared value during the PPA term.
The net worth of the bidders should be equal to or greater than ₹13.26 million (~$161,207) /MW of the quoted capacity as of the last date of the previous financial year.
They must have a minimum annual turnover of ₹5.19 million (~$63,097) /MW of the quoted capacity during the previous financial year. Alternatively, they can submit proof for internal resource generation capability in the form of Profit Before Depreciation, Interest, and Taxes for a minimum amount ₹1.376 million (~$16,728) / MW of the quoted capacity as of the last date of the previous financial year. They can also submit an in-principal sanction letter from lending institutions or banks committing a line of credit for a minimum amount of ₹1.3 million (~$15,805) /MW of quoted capacity towards meeting the working capital requirement of the quoted project.
Foreign companies are also allowed to participate in the tender, condition that they form a ‘Special Purpose Vehicle’ (SPV), which must be an Indian company registered under the Companies Act 2013 as its subsidiary company, with at least 51% shareholding in the SPV, before signing the PPA.
The Ministry of Power has recently introduced new guidelines for the tariff-based competitive bidding process for procurement power from grid-connected wind power projects to boost renewable capacity and meet the distribution licensee’s renewable purchase obligation.
In May 2023, RECPDCL invited bids to empanel consultants to undertake project management consultancy services for solar projects (floating solar and ground-mounted) at various locations across India for two years.
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