IPPToday #133: India surges forward with solar power development with 2225 MW tenders
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In November 2017, solar tender and auction activity in India plummeted. The solar capacity tendered across the country fell by 25% from the previous month to 300 MW and the amount of solar auctioned slumped to 5 MW, a 98% decrease.
This put the government in a difficult position regarding its ambitious targets of commissioning 15 GW in the 2017-18 financial year (ending in March) and 60 GW by 2022. In response, the Ministry of New and Renewable Energy set out plans to tender 3 GW of solar projects in January 2018.
Despite the bold scale of the plans, the ministry seems to be keeping its word.
On 5 January, the Solar Energy Corporation of India (SECI) launched two tenders for a total of 950 MW of photovoltaic (PV) capacity.
SECI released Request for Selection (RfS) documents inviting developers to bid for 200 MW of grid-connected solar parks that will be built within the Pavagada solar complex in Karnataka, south-west India. Bidders can submit proposals for projects between 50 MW and 200 MW in generation capacity. The deadline for submitting proposals in February 20.
The remaining 750 MW is to be developed at the Kadapa solar park in Andhra Pradesh, in the south-east. Participants can bid for projects between 250 MW and 750 MW until February 23.
Projects awarded in both tenders will be developed on a build-own-operate (BOO) basis. Successful bidders will be sign 25-year power purchase agreements (PPAs) with SECI. The output will then be sold to local power distribution companies.
Furthermore, on 4 January SECI launched a tender for the design, supply, construction, installation, testing and commissioning of 275 MW of grid-connected solar projects in Uttar Pradesh, a state in the north of India. This comprises six projects to be located in the Kanpur Dehat and Jalaun districts. Interested parties may bid for between 20 MW and 75 MW.
As the tenders in Karnataka and Andhra Pradesh, successful bidders will sign 25-year PPAs with SECI. They will also be developed on a BOO basis.
The tender closes on 9 February. PPAs will be signed within one month of the issuing date of a letter of intent. The plants have to be commissioned within 12 months of the PPA signing.
A further 1 GW of grid-connected solar projects in Uttar Pradesh are being tendered by the Uttar Pradesh New and Renewable Energy Development Agency (UPNEDA).
The tender is for the design, supply, construction, procurement, installation, testing and commissioning of PV plants with a minimum capacity of 5 MW and a maximum of 1000 MW. The projects will be developed on a BOO basis, and can be located at a single or across multiple sites, depending on land availability. Power from the proposed plants will be supplied exclusively to Uttar Pradesh.
For more information on these tenders, please see the Business Opportunities section of our website.