Tender Floated for 500 MW Solar Projects Under KUSUM Program in Odisha

The last date to submit the bids is June 22, 2021


The Odisha Renewable Energy Development Agency (OREDA) has invited bids to select solar power generators to set up 500 MW of solar projects under Component A of the Pradhan Mantri Kisan Urja Suraksha evam Utthan Mahabhiyan (PM KUSUM) program on a build, own, and operate basis.

A ceiling tariff of ₹3.08 (~$0.042)/kWh has been set for the tender.

A prime focus of the project is to allow Grid Corporation of Odisha to meet its solar renewable purchase obligation.

Another key area for promoting the project is to reduce carbon footprint to the extent of 6,66,500 tons per annum for a period of 25 years.

The project is also aimed at enabling farmers, cooperatives, village bodies, and other such entities to either develop the project or increase their earnings through leasing their land to set up the project by a builder. Additionally, OREDA aims to generate local employment through the project.

The last date to submit the bids online is June 22, 2021, and bids will be opened on June 24. The pre-bid meeting will be held on May 21.

The successful bidder will have to furnish ₹500,000 (~$6,799)/MW of the quoted capacity as the performance security deposit.

Under Component A of the program, the government has set a target to set up 10 GW of decentralized ground-mounted grid-connected solar projects of individual project size of up to 2 MW.

The solar power generator will be responsible for designing, engineering, procuring, supplying, taking insurance, transporting, constructing, installing, erecting, testing, and achieving the commissioning of the project. The bidder will also be responsible for laying the dedicated 11 kV line from the project to a nearby 33/11 kV substation, construction of bay, and related switchgear at the substation where the project will be connected to the grid, and metering will be done.

The successful bidder will be required to maintain a minimum capacity utilization factor (CUF) of 15% and a maximum CUF of 18.7%.

The successful bidder should commission the project within nine months from the date of the issuance of the letter of award.

To participate in the bidding process, the bidders could partake as an individual farmer, group of farmers, cooperative, or a panchayat setting up the project on their lands. Alternatively, they could hand over the task to a developer. The bidder should not have been blacklisted or defaulted by any government agency, public sector undertaking, or any other institution.

The bidder must have established a high-quality environment management system and information security standards and must have ISO 9001 and ISO 14001 certifications for the solar modules and inverters.

If a developer is developing the project, the bidder’s net worth should not be less than ₹10 million (~$135,999)/MW for the capacity applied during the last financial year.

In February this year, the Tamil Nadu Generation and Distribution Corporation floated a tender to set up 500 MW of solar projects under Component-A of the PM KUSUM program.

Earlier, the Ministry of New and Renewable Energy ramped up the solar capacity target for the PM KUSUM program from 25.75 GW to 30.8 GW by 2022. The ministry also reduced central financial assistance under the program to ₹340.35 billion (~$4.61 billion) from ₹344.22 billion (~$4.66 billion).

According to Mercom’s India Solar Tender Tracker, tenders for 576 MW of solar projects have been floated in the country under Component-A of the PM KUSUM program by various organizations, including the Bangalore Electricity Supply Company Limited, Madhya Pradesh Urja Vikas Nigam Limited, and Meghalaya Power Distribution Corporation Limited, among others.

Image Credit: JREDA