UPNEDA Issues Amended RfP to Develop 1 GW of Solar Projects in Uttar Pradesh

The agency will penalize project developers for delay in project commissioning


The Uttar Pradesh New and Renewable Energy Development Agency (UPNEDA) has issued an amended request for procurement (RfP) to develop 1 GW of grid-connected solar photovoltaic (PV) projects across the state.

The bid-submission deadline is May 28, 2018.

This is a global tender and the projects will be developed on a ‘build own operate’ basis. The scope of work includes the design, supply, construction, procurement, installation, testing, and commissioning of the project.

The minimum project size for a bidder is 5 MW and the maximum project size is 1,000 MW. The developers can choose to develop the projects at a single location or at multiple locations, depending on their convenience and land availability. No upper tariff ceiling has been set for this tender.

When contacted, a UPNEDA official told Mercom, “A single bidder can present multiple bids; the bids will be based on the location of the project. This was introduced for this tender on the demand of developers.  During pre-bid meeting the developers said that for various locations they would not be able to quote the same tariff; it should be based on the location. In regions like Bundelkhand and Poorvanchal, there are transmission issues due to negligent infrastructure, while in some other areas there is dearth of land. That’s why we have allowed multiple bids by the same developer. If one developer wants to develop 500 MW, but he has five different locations, he can bid for different project sites and different tariffs based on the location”.

The entire cost of transmission including the cost of line construction, wheeling charges, and losses will be the developer’s responsibility. The successful developers will enter Power Purchase Agreements (PPAs) with Uttar Pradesh Power Corporation Ltd. (UPPCL) for a period of 25 years.

The UPNEDA has also specified that it will penalize project developers for delay in project commissioning.

For delay up to one month, 20 percent of the Performance Bank Guarantee (PBG) will be encashed as penalty calculated on an everyday basis and proportionate to the capacity not commissioned. For delay of more than one month and up to three months, UPNEDA will encash the remaining amount from PBG, worked out on per day basis and proportionate to the capacity not commissioned.

In case the commissioning of the project is delayed by more than three months, the tariff at which the project has been awarded to the developer will be reduced at the rate of ₹0.50 (~$0.0075)/kWh for every day of delay for the remaining capacity  that has not been commissioned. The maximum time period allowed for the commissioning of the full project capacity with encashment of PBG and reduction in the fixed tariff will be 24 months from the effective date of the PPA.

Initially, the 1 GW capacity was tendered by the UPNEDA in January 2018. Later UPNEDA, approached the Uttar Pradesh Electricity Regulatory Commission (UPERC) for certain modifications to the competitive bidding guidelines issued by Ministry of New and Renewable Energy (MNRE) for solar PV projects.

In the beginning of April 2018, UPERC approved the RfP and PPA for 1 GW of grid-connected solar PV projects put forth by UPNEDA.

According to Mercom’s India Solar Tender Tracker, the state of Uttar Pradesh has an installed solar capacity of approximately 635 MW and a project pipeline of approximately 300 MW.