Tender for 98 MW of Solar Projects Under KUSUM Program with ₹3.10/kWh Tariff Cap

The last date to submit the bids is June 15, 2022


Uttar Pradesh New and Renewable Energy Development Agency (UPNEDA) has invited bids to set up 98 MW of solar projects of 0.5 MW, 1 MW, 1.5 MW, and 2 MW capacity on agricultural land, pasturelands, and marshlands of farmers in Uttar Pradesh under the Pradhan Mantri Kisan Urja Suraksha evam Utthan Mahabhiyan (PM KUSUM) program.

The projects will be developed under Component A of the KUSUM program falling within a radius of 5 km from the selected substations.

The last date to submit the bids online is June 15, 2022. Bids will be opened the following day.

Under Component A of the PM-KUSUM program, the government aims to set up 10,000 MW of grid-connected solar power projects of individual project size of up to 2 MW.

The successful bidder should furnish a performance bank guarantee of ₹500,000 (~$6,450)/MW for the capacity awarded within 30 days of the letter of award.

The distribution companies (DISCOMs) in whose area substations the solar power projects are proposed to be set up should enter into power purchase agreements (PPAs) with successful bidders for 25 years.

UPNEDA has set a ceiling tariff of ₹3.10 (~$0.039)/kWh for the tender.

The list of substations with available capacity for connectivity is given below:

UPNEDA Final-Updated

The selected developer will be responsible for constructing the dedicated 11 kV line from the solar power project to the substation, the construction of the bay, and related switchgear at the substation where the project will be connected to the grid and metering is done.

Individual farmers, groups of farmers, cooperatives, panchayats, farmer producer organizations, and water user associations who have their land or have land lease agreements can participate in the tender.

If the bidders concerned fail to arrange the equity needed to set up the projects, they may opt to erect the project through a developer by signing a land lease agreement. In such a case, the landowner will get lease rent.

The developer’s net worth who sets up the project on leased land should not be less than ₹10 million (~$129,000)/MW of the quoted capacity.

The cells and modules used in the project should be sourced only from the models and manufacturers included in the ‘Approved List of Models and Manufacturers’ as published by the Ministry of New and Renewable Energy (MNRE) and updated as of the commissioning date of the project.

Last May, UPNEDA invited bids for setting up 106 MW of grid-connected solar projects of 0.5 MW, 1 MW, and 2 MW capacities under Component A of the PM KUSUM program.

Earlier, the Uttar Pradesh Electricity Regulatory Commission approved several deviations in the request for selection and PPA for power procurement from the small capacity (0.5 MW to 2 MW) grid-connected solar projects under ‘Component-A’ of the PM-KUSUM program. The deviations included the approval of a ceiling tariff of ₹3.1 (~$0.043)/kWh to allow maximum participation.

According to Mercom’s India Solar Tender Tracker, UPNEDA has so far floated tenders for 106 MW of solar projects under the PM KUSUM program.