NHPC invites bids for 1.5 GW wind and solar hybrid power projects across India

NHPC invites bids for 1.5 GW wind and solar hybrid power projects across India

NHPC Limited (NHPC) has announced its intention to purchase 1,500 MW of power from ISTS-connected hybrid wind and solar projects. This endeavor will be undertaken through a tariff-based competitive bidding (TBCB) process, including online bidding and reverse auction, and will entail a 25-year Power Purchase Agreement (PPA) with the selected bidders.

NHPC aims to partner with hybrid power developers/hybrid power generators (HPD/HPG) to set up ISTS-connected solar-wind hybrid power projects with or without energy storage systems (ESS) anywhere in India. The power generated will be purchased by NHPC and later sold to government utilities, distribution companies (Discoms) and other beneficiaries.

NHPC will act as an intermediary nodal agency, ensuring a smooth transition between purchasing power from HPDs and selling it to procuring entities, operating entirely on a back-to-back basis. This approach protects the interests of both power generators and buyers.

Under the TBCB process, the minimum project size is set at 50 MW, with subsequent multiples of 10 MW under the open category, for a total cumulative capacity of 750 MW. The selection of bidders will be based on a one-stage, two-envelope bidding process, including a technical bid (Envelope-I) and a financial bid (Envelope-II), followed by a reverse auction.

To encourage the growth of renewable energy, NHPC allows bidders to benefit from financial incentives such as accelerated depreciation, concessional tariffs and tax exemptions, as applicable to such projects. These incentives will not affect the selection criteria, ensuring equal opportunities for all bidders.

Bidders are required to offer a single tariff for the entire capacity on offer, which will remain in effect for the duration of the 25-year PPA. In the event that the project is transferred or sold to a third party, NHPC reserves the right to activate a PPA with the new owner, who must respect all terms and conditions.

Under this initiative, HPDs are responsible for setting up solar-wind hybrid energy projects, including a dedicated transmission network up to the point of interconnection/handover, covering a range of wind, solar PV and solar energy systems capacities. The selection process is not technology-driven, focusing on the overall feasibility and impact of the projects.

NHPC reserves the right to withdraw the invitation to bid at its discretion, without assigning a specific reason, while not assuming any responsibility for the consequences of such decision.

The deadline for bidding is set at 12 December 2023, and interested bidders are required to pay an cash deposit (EMD) of INR 35 million.

This ambitious initiative by NHPC not only contributes to India’s renewable energy goals but also opens up opportunities for private sector players to actively participate in the country’s renewable energy landscape. This project is expected to stimulate significant investment and innovation in wind and solar hybrid power generation across the country, further cementing India’s commitment to clean and sustainable energy sources.

Please see the document below for more details.

You may also like...

Leave a Reply

Your email address will not be published. Required fields are marked *