India To Annually Invite Closed Bids For 8GW Wind Power Projects Up To 2030
The development will put an end to tariff-based competitive bidding in the wind energy sector.
Putting an end to tariff-based competitive bidding, the Ministry of New and Renewable Energy has decided to invite closed bids for 8GW wind energy projects annually from Jan. 1, 2023, up to 2030.
Necessary amendments in the guidelines for tariff-based competitive bidding process for procurement of power from grid connected wind power projects would be notified separately, the ministry said in a notification on Thursday.
It had set up a special committee last year to find ways for faster capacity addition of wind energy across the eight windy states in the country.
In different states, there were also issues related to variable tariffs that was to be resolved. High-wind states can have lower tariffs, but discoms demanded lower tariffs even from low-wind states—a serious challenge for project developers.
Based on the recommendations of the committee, the ministry decided to set up 8GW capacity every year till 2030. The bids will be composite bids, comprising of state-specific sub-bids for each of the eight windy states.
The bidder shall bid for the capacities in one or more states as per their choice, but bids for each state should be separate, it said. "The L1 (Lowest bidder) for each state shall be decided separately."
The power generated from the capacity established in each of the state sub-bids will be pooled and offered at a pooled tariff to all procurers. The pooling of tariff will be as per the notified Electricity Amendment Rules, 2022, according to the notification.
The maximum cap size of any sub-bid will not be more than 2GW per year. The Solar Energy Corp. of India or the implementing agency will determine the minimum and maximum bid size on the basis of the wind renewable power obligation targets of states.
The bids will be on a single-stage, two-envelope closed bid-basis. One envelope will contain the technical bid and the other will have the financial bid, the ministry said.
"The envelope containing the technical bid will be opened first, but the financial bids of only those bidders who qualify in the technical bid will be opened," it said.
Criteria For Bidders
The bidders must have adequate financial capacity and technical manpower to set up the project. The financial bids of only technically-qualified bidders shall be opened, it said.
There will be penalties for non-execution of the awarded projects. In case, the project commissioning is delayed by a year or more from the scheduled commissioning date, the performance bank guarantee of 5% of project size shall be encashed.
"Where the project is not executed by the bidder even after 18 months of the SCD, the bidder will be debarred for five years."