The Solar Energy Corporation of India (SECI) has issued a Request for Selection (RfS) document for the selection of solar power developers to set up 1,200 MW of ISTS-connected Solar PV Power Projects in India. This initiative is part of SECI-ISTS-XVI, which aims to develop solar power projects through a tariff-based competitive bidding process.
Under this RfS, solar power developers (SPDs) are required to set up the ISTS-connected solar PV power projects, including the necessary transmission network up to the interconnection or delivery point, at their own expense. The primary objective is to supply solar power to SECI. The developers are responsible for identifying suitable land, installing and owning the project, obtaining connectivity, and securing all necessary approvals. The projects must be connected to the ISTS network or, if applicable, to the State Transmission Utility (STU) or intra-state Transmission System (InSTS) network for power supply to SECI. If the STU interconnection is used, the project must be installed in the same state where the buying entity is located.
The bidding process includes a document sale end date of July 12, 2024, and the bid submission end date is also July 12, 2024. The bid opening date is scheduled for July 18, 2024. Interested bidders are required to submit an Earnest Money Deposit (EMD) of ₹9,42,000 (approximately Nine Lakhs and Forty-Two Thousand Indian Rupees) per MW per project in the form of a bank guarantee along with their response to the RfS.
The selected projects will utilize solar photovoltaic technology, but the selection process itself is technology-agnostic. A total capacity of 1,200 MW will be allocated through e-bidding, followed by an e-Reverse Auction (e-RA). Bidders, including their parent companies, affiliates, ultimate parents, or any group companies, must submit a single bid with a minimum contracted capacity of 50 MW and a maximum of 600 MW, in prescribed formats. Project locations are at the discretion of the bidder or SPD, considering the provisions of Clause 7 of the RfS.
Partial commencement of power supply from the project will be accepted by SECI, provided that each part supply is at least 50 MW, with penalties applicable for parts that do not meet this threshold. However, the Scheduled Commercial Operation Date (SCSD) will remain unchanged despite partial commencements. The Power Purchase Agreement (PPA) will remain valid for the specified period regardless of whether the supply is partial or complete.
The maximum allowable time for the full project capacity to commence power supply, subject to penalties, is six months from the SCSD or the extended SCSD, if applicable. Delays beyond this period will incur penalties calculated on a per-day basis proportional to the contracted capacity that has not commenced supply. For instance, if a 240 MW project experiences an 18-day delay in starting supply for 100 MW, the penalty is calculated as PBG amount x (100/240) x (18/180).
Developers are responsible for setting up the project, including the transmission network up to the interconnection or delivery point, at their own cost. They must also secure all necessary approvals and permits from the state government and local bodies. The EMD of INR 9,42,000 per MW per project, in the form of a bank guarantee valid for 12 months from the last bid submission date, must be submitted with the bid, or the bid will be rejected.
Successful bidders must provide a Performance Bank Guarantee (PBG) valued at ₹23,55,000 per MW per project before signing the PPA. The PBG must be valid for 12 months after the SCSD of the project. Upon successful verification of the PBG, the EMD bank guarantee will be returned by SECI. The PPA will only be signed once the PBG has been successfully verified. Any shortfall in PBG validity before signing the PPA must be corrected by the developer before the PBG expires. Electronic Bank Guarantees (e-BGs) are acceptable for both EMD and PBG under this RfS.
Please view the document below for more details.
Discover more from SolarQuarter
Subscribe to get the latest posts sent to your email.
