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<p>The Uttar Pradesh Power Corporation Limited (<a href="https://www.upenergy.in/" target="_blank" rel="noopener noreferrer">UPPCL</a>) issued a tender for a 20 MW (± 25%) slop-based power project in the state.</p>
<p>Slop, also known as Vinasse, is an acidic effluent from the fermentation of sugarcane molasses in distilleries.</p>
<p>Interested bidders are expected to make an earnest money deposit (EMD) of ₹100,000 (~$1,336)/MW. The last date for bid submission is September 15, 2020.</p>
<p>The tender was announced with a ceiling tariff of ₹2.899 (~$0.039)/kWh (50% of the tariff to be treated as variable cost). Successful bidders will be shortlisted on September 30, 2020. A power purchase agreement (PPA) will be signed between the UPPCL and the selected bidder for ten years. The minimum capacity to be offered in the bid is 2 MW.</p>
<p>To be eligible to take part in the competitive bidding process, the bidding company’s net worth should at least be equal to the value calculated at the rate of ₹5 million (~$66,810)/MW of capacity offered. The net worth must be based on the unconsolidated audited annual accounts of any of the last three financial years.</p>
<p>Earlier this year, the Uttar Pradesh Electricity Regulatory Commission (UPERC) had <a href="https://mercomindia.com/uttar-pradesh-drafts-bidding-document/" target="_blank" rel="noopener noreferrer">dismissed</a> a petition filed by the Uttar Pradesh Power Corporation Limited seeking to fulfill its renewable purchase obligation (RPO) target by procuring slop-based power. The request was mainly rejected because, currently, the central government does not have guidelines in place for procuring slop-based power. The Commission, however, approved UPPCL’s proposed fuel mix with a maximum of 40% bagasse with slop, and it stated that the minimum bid of 2 MW would be appropriate.</p>
<p>Previously, UPERC had <a href="https://mercomindia.com/uttar-pradesh-approves-tariff-bagasse-based-power/" target="_blank" rel="noopener noreferrer">approved</a> the amended PPA for bagasse-based power signed between DSCL Sugar, Hariawan, and UPPCL. The Commission had also approved the tariff of ₹4.78 (~$0.067)/kWh in line with the amended PPA.</p>
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Uttar Pradesh Issues Tender for 20 MW of Slop-Based Power Projects

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