The NHPC Limited issued a tender for the selection of Solar Power Generators (SPGs) to set up 1,200 MW of grid-connected Solar PV Power Projects with an Energy Storage System (ESS) of 600 MW/1,200 MWh. This is being done through a competitive bidding process, with the possibility of an additional capacity of up to 1,200 MW with ESS under a “Greenshoe Option.” This initiative is aimed at increasing renewable energy production in India by encouraging investment and providing state utilities with stable, dispatchable power sources.
The document download starts on September 20, 2024, and the last date for submitting queries or clarifications is September 30, 2024. A pre-bid meeting will be held on October 3, 2024. Online bid submission begins on October 8, 2024, with the deadline for submission being October 18, 2024. Offline documents must be submitted by October 21, 2024. The technical bids will be opened on October 23, 2024​.
The projects will be developed on a Build-Own-Operate (BOO) basis, meaning that SPGs are responsible for the design, development, financing, and operation of these solar power projects. The energy generated from these projects will be sold to state utilities, distribution companies (DISCOMs), or other designated entities. NHPC will act as an intermediary between the SPGs and these buying entities. The selected projects will be awarded Power Purchase Agreements (PPAs) with a tenure of 25 years from the date of commissioning.
A unique aspect of this tender is the mandatory inclusion of an ESS for each solar power project. For every 1 MW of contracted solar capacity, a corresponding ESS of at least 0.5 MW/1 MWh must be installed. The ESS must store energy generated from solar power only, and SPGs have the flexibility to either own the ESS or partner with third-party providers. This ensures that the energy generated can be stored for later use, making solar power more reliable and helping to meet the growing demand for round-the-clock clean energy.
To qualify, bidders must submit their proposals online, providing technical and financial bids, which will be evaluated in a two-step process: first, a technical assessment, followed by a reverse auction for the financial bid. SPGs will be chosen based on their compliance with the requirements and their proposed tariffs. Importantly, bidders can propose projects across various locations in India, with a minimum project size of 50 MW.
NHPC also allows for additional capacity allocation through the Greenshoe Option, wherein successful bidders may opt to execute PPAs for more than their originally quoted capacity at the lowest discovered tariff. This additional capacity allocation helps maximize the renewable energy output under this tender.
The tender is open to both Indian companies and foreign companies, provided the foreign companies establish a subsidiary in India. The entire process is designed to be transparent, with bids submitted electronically via the Central Public Procurement (CPP) Portal.
This tender is aligned with the Indian government’s renewable energy policies and objectives, which encourage competitive bidding for clean energy projects. With such initiatives, the government aims to ensure that renewable energy, including solar, plays a pivotal role in India’s energy transition. The tender reflects NHPC’s commitment to facilitating solar power development while ensuring that the projects are technologically advanced, cost-effective, and environmentally sustainable​.
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