Uttar Pradesh New and Renewable Energy Development Agency (UPNEDA) plans to conduct reverse auction for its first large solar project of over 1,000 MW capacity by July end.
Uttar Pradesh New and Renewable Energy Development Agency (UPNEDA) plans to conduct reverse auction for its first large solar project of over 1,000 MW capacity by July end. The tender document for internationally competitive bidding was initially issued in January, but was amended and reissued in April this year. The tender generated strong interest from domestic and foreign investors which led to participation by around 13 bidders with over 37 bids for 1,870 MW capacity.
According to an official working on the project, the technical bids for the project opened last month while the financial bids will open on June 21. “We plan to conduct the reverse auction for the project in July,” the official added.
Sources close to the development told FE there are some 13 domestic and foreign investors who have participated in the bid with interest for around 1,870 MW of project capacity. The list of participants include Azure Power with five bids for 300-MW capacity, Adani and Essel with five bids for 250 MW each, ACME Solar with six bids for 300 MW, ReNew Power with six bids for 280 MW capacity and Hero Renewables with two bids for 100 MW. The other foreign investors include Reynman (Canadian Solar) with two bids for 100 MW, and Fortune Credit Capital with one bid for 70 MW capacity. Some other players were Eden Renewable, Ray Power Infra and MMEPL for up to 100 MW capacity.
The entire cost of transmission including the cost of line construction, wheeling charges and losses will be borne by the developer. The successful developers will enter Power Purchase Agreements (PPAs) with Uttar Pradesh Power Corp(UPPCL) for a period of 25 years. The UPNEDA has also specified that it will penalise project developers for delay in project commissioning. If for any contract year it is found that the developer has not been able to generate minimum energy as per agreement, the developer shall pay a penalty equal to 25% of the project tariff to the procurer, for such shortfall in units, the tender document said.