GUVNL invites bids for 500 MW Wind Power Projects with Greenshoe Option
01 Jul 2023
Gujarat Urja Vikas Nigam (GUVNL) has released a request for selection (RfS) to procure power from 500 MW of grid-connected wind power projects in Phase VI, with an option to add an additional 500 MW. The projects can be located anywhere in India as chosen by the bidders themselves.
For intra-state projects, the minimum eligible bid capacity is 25 MW, while for inter-state projects, it is 50 MW.
Interested bidders must submit their bids by August 7, 2023, and the bid opening will take place on August 18.
Bidders are required to pay a non-refundable bid processing fee of Rs 300,000 ($3,643) plus 18 per cent goods and service tax, along with an earnest money deposit of Rs 1 million ($12,144) per MW of quoted capacity.
Upon successful bid, the selected bidder must provide a performance bank guarantee of Rs 2 million ($24,287) per MW of allotted capacity at the time of signing the power purchase agreement (PPA).
The duration of the PPA will be 25 years, and the wind project developer will be responsible for designing the interconnection with either the state transmission utility or central transmission utility (CTU) through a dedicated transmission line for energy delivery at the Gujarat Energy Transmission Corporation periphery.
In the case of inter-state projects or projects connected through the CTU Network, all transmission charges and losses up to the delivery point will be the responsibility of the wind project developers.
The commissioned wind projects must be operational within 24 months of signing the PPA. For partial commissioning, the minimum capacity required for acceptance will be 25 MW (for intra-state projects) or 50 MW (for inter-state projects), or 50 per cent of the allocated capacity, whichever is lower.
The tender also allows projects under construction, not yet commissioned, or already commissioned without a long-term PPA to be considered. These projects must not have been accepted under any other central or state programs and should not have any obligations towards existing buyers.
To be eligible, bidders must have prior Original Equipment Manufacturers/Engineering Procurement and Construction tie-ups with at least three other entities before submitting the bid.
Bidders must have a net worth of at least Rs 12 million ($145,724) per MW of quoted capacity in any one of the last three financial years. Wind project developers from countries sharing a land border with India can participate in the tender if they are registered with the authorised body.
The declared annual capacity utilisation factor (CUF) of the project must not be less than 22 per cent. Developers must maintain generation within +20 per cent and -20 per cent of the declared CUF during the 25-year PPA. In case of underperformance, the developer will be liable to pay 50 per cent of the PPA tariff as compensation to GUVNL.
If the generation exceeds 20 per cent of the declared annual CUF, developers can sell the excess power to other entities, but GUVNL holds the right of first refusal. If GUVNL chooses to purchase the excess power, developers will be compensated at 75 per cent of the PPA tariff.
GUVNL has specified that only type-certified wind turbine models listed in the Revised List of Models and Manufacturers of Wind Turbines by the Ministry of New and Renewable Energy can be used.
Previously, GUVNL awarded contracts for 240 MW out of the total 500 MW capacity in Phase V of their grid-connected wind projects auction. The lowest tariff quoted in that auction was Rs 3.11 ($0.038) per kWh.
According to Mercom India Research, GUVNL has tendered a total of 2.3 GW of wind power projects across Phase I to V.
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