NHPC Limited has announced its intention to procure 1500 MW of ‘Firm & Dispatchable’ renewable energy power coupled with energy storage systems through a competitive bidding process. This initiative aims to boost renewable energy adoption in India and promote the integration of energy storage technologies.
The bidding process will be conducted online, followed by a reverse auction, allowing renewable energy developers (REPDs) to participate in the selection of projects. Successful bidders will enter into a 25-year Power Purchase Agreement (PPA) with NHPC for the purchase of solar power.
The selected REPDs will be responsible for setting up ISTS-connected Firm and Dispatchable Renewable Energy Power Projects on land they identify and arrange across India. The power generated from these solar PV projects will be purchased by NHPC and subsequently sold to state utilities, distribution companies, or other beneficiaries, the details of which will be provided later.
Key project specifications include a minimum project size of 50 MW, with a cumulative capacity not exceeding 750 MW. Energy storage system participation is mandatory, and the projects must achieve a peak availability of 90% during daily peak hours. A tariff penalty of 1.5 times the PPA tariff will be imposed for any shortfalls in energy delivery.
The commissioning period for these projects is set at 24 months, and early or part commissioning is allowed. Additionally, excess power generated can be sold to third parties without requiring a separate NOC.
NHPC will serve as the intermediary agency for power procurement and sale, facilitating a seamless process between REPDs and buying entities. However, any delays in commissioning beyond six months will result in project capacity reduction and a one-year bidding ban for the developer.
The pre-bid meeting for interested parties is scheduled for October 16, 2023, and the deadline for bid submission is November 13, 2023. This initiative underscores India’s commitment to expanding its renewable energy capacity and energy storage capabilities.
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