NHPC Limited (NHPC) has announced its intent to procure 1,500 MW of power from ISTS-connected Wind-Solar Hybrid Power Projects. This endeavor will be conducted through a Tariff-Based Competitive Bidding (TBCB) process, including online bidding and a reverse auction, and will entail a 25-year Power Purchase Agreement (PPA) with the selected bidders.
NHPC aims to partner with Hybrid Power Developers/Hybrid Power Generators (HPD/HPG) for the establishment of ISTS-connected Solar-Wind Hybrid Power Projects with or without Energy Storage Systems (ESS) anywhere in India. The generated power will be purchased by NHPC and subsequently sold to state utilities, distribution companies (Discoms), and other beneficiaries.
NHPC will act as an intermediary nodal agency, ensuring a seamless transition between the power procurement from HPDs and its sale to the buying entities, operating entirely on a back-to-back basis. This approach safeguards the interests of both power generators and purchasers.
Under the TBCB process, the minimum project size is set at 50 MW, with subsequent multiples of 10 MW under the open category, totaling a cumulative capacity of up to 750 MW. The selection of bidders will be based on a single-stage two-envelope bidding process, encompassing a Technical Bid (Envelope-I) and a Financial Bid (Envelope-II), followed by a reverse auction.
To encourage the growth of renewable energy, NHPC allows bidders to avail fiscal incentives such as Accelerated Depreciation, Concessional Customs and Excise Duties, and Tax Holidays, as applicable to such projects. These incentives will not impact the selection criteria, ensuring a level playing field for all bidders.
Bidders are required to submit a single tariff for the entire capacity offered, which will remain applicable for the full 25-year PPA period. In the event of the project’s transfer or sale to a third party, NHPC retains the rights to activate the PPA with the new owner, who must honor all terms and conditions.
Under this initiative, HPDs are responsible for establishing the Solar-Wind Hybrid Power Projects, including the dedicated transmission network up to the Interconnection/Delivery Point, covering a range of wind, solar PV, and ESS capacities. The selection process is technology-agnostic, focusing on the overall viability and impact of the projects.
NHPC retains the right to withdraw the invitation for bids at its discretion, without assigning a specific reason, while bearing no liability for the consequences of such a decision.
The bid submission deadline is set for December 12, 2023, and interested bidders are required to pay an Earnest Money Deposit (EMD) of ₹35 million.
This ambitious initiative by NHPC not only contributes to India’s renewable energy goals but also opens up opportunities for private players to actively participate in the nation’s renewable energy landscape. It is expected to stimulate substantial investments and innovation in the field of wind-solar hybrid power generation across the country, further solidifying India’s commitment to clean and sustainable energy sources.
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