SJVN Issues RfS For 1,200 MW Solar PV Projects With 600 MW/2,400 MWh Energy Storage System

The SJVN Limited has released a Request for Selection (RfS) document for selecting Solar Power Developers (SPDs) to set up 1,200 MW of ISTS-connected solar photovoltaic (PV) power projects combined with a 600 MW/2,400 MWh Energy Storage System (ESS) across India. This initiative aims to facilitate the procurement of firm and dispatchable power from renewable sources through a tariff-based competitive bidding process.

SJVN will enter into a Power Purchase Agreement (PPA) with the successful bidders to supply power for 25 years. The project is expected to support the government’s goal of promoting renewable energy through the competitive procurement of solar power combined with energy storage. The guidelines and procedures for competitive bidding have been issued by the Ministry of Power, Government of India.

The total cumulative project capacity to be awarded under this RfS is 1,200 MW, and bidders can propose a minimum project capacity of 50 MW up to a maximum of 600 MW. The capacity will be offered in multiples of 10 MW, and projects located in North-Eastern states and special category areas can offer a minimum capacity of 30 MW. The bidders will be selected through an electronic tendering process followed by a reverse auction.

The key dates for this tender are as follows: The RfS was issued on August 30, 2024, and a pre-bid meeting is scheduled for September 26, 2024. The last date for online bid submission is October 22, 2024, and hard copies must be submitted by October 25, 2024. The technical bids will be opened on October 25, 2024. The opening date of price bids will be communicated to the technically qualified bidders.

A non-refundable document fee of ₹29,500 and a bid processing fee of ₹15 lakh plus 18% GST per project must be submitted by the bidders. Additionally, an Earnest Money Deposit (EMD) of ₹10,82,000 per MW per project, up to a maximum of ₹35 crore, must be provided in the form of a bank guarantee, Payment on Order Instrument (POI), or Insurance Surety Bond.

The EMD is crucial for maintaining the integrity of the bidding process. If a bidder withdraws after submitting a bid or fails to execute the PPA within the stipulated time, the EMD can be forfeited by SJVN. After the project’s successful completion, bidders will also need to submit a Performance Bank Guarantee (PBG) as outlined in the RfS document.

The tender aims to attract companies, including those with foreign investment, to harness solar energy in India, providing them the opportunity to utilize incentives like accelerated depreciation and concessional customs and excise duties. This is part of a broader strategy to boost India’s renewable energy capacity and ensure a reliable supply of solar power to various distribution companies (DISCOMs) across the country​.