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A tender for the construction of 500 MW of solar power projects across the nation, which will be connected to the interstate transmission system (ISTS) has been floated by the subsidiary firm of REC Limited, REC Power Development and Consultancy (RECPDCL).
Bids for this 500 MW tender must be submitted by December 23, 2022, which will be revealed on December 28, 2022.
Each interested bidder will be required to pay a bid processing cost of Rs. 50,000, for quoting capacity in the 50 MW to 99 MW range, while for capacities of 100 MW and above, it would be Rs 1.5 million.
Further, for each MW of the specified capacity, the bidder has to provide an earnest money deposit of Rs. 400,000. And, a performance bank guarantee for Rs 800,000/MW of the quoted capacity will be needed from the successful bidder.
In order to preserve flexibility in their generation and scheduling, the projects combine thermal or hydroelectric power with renewable energy sources and storage.
Damodar Valley Corporation will sign a 25-year power purchase agreement (PPA) with the selected bidders. The project must be operational within 18 months of the PPA’s signing date.
Only commercially established and functioning technologies should be employed in order to minimize technical risk and finish projects on time for commissioning. Additionally, the developer will be responsible for and pay for the ISTS connectivity.
A claimed yearly capacity utilization factor (CUF) of less than 22% is not acceptable. The solar modules that will be utilized must have a warranty covering their peak output wattage, which cannot be less than 90% after 10 years and 80% after 25 years.
Projects which have already been commissioned are not eligible for consideration, according to the tender document.
However, in case the projects are not previously accepted under other federal or provincial programs and have not yet been finished or commissioned will be taken into consideration.
The net worth of bidders must be Rs. 8 million/ MW or more of the stated capacity, and they should be able to create internal resources for at least Rs. 830,000/MW of the specified capacity, as of the last day of the preceding fiscal year, or at least seven days before the deadline for bid submission.
For the previous fiscal years, the bidder must have a yearly turnover of Rs. 4.145 million/MW or more of the specified capacity, and their net worth should be positive.
In order to satisfy the project’s need for working capital, they need to obtain an in-principle sanction letter from the financial institutions committing a Line of Credit for at least Rs. 1.036 million/MW of the stated capacity.