UPNEDA invites bids for 98 MW of Solar Projects in Uttar Pradesh

20 May 2022 CW Team

Uttar Pradesh New and Renewable Energy Development Agency (UPNEDA) has invited bids to set up 98 MW of solar projects of 0.5 MW, 1 MW, 1.5 MW, and 2 MW capacity on agricultural land, pasturelands, and marshlands of farmers in Uttar Pradesh.

The projects will be developed under Component A of the KUSUM program falling within a radius of 5 km from the selected substations. The last date to submit the bids online is June 15, 2022. Bids will be opened the following day. Under Component A of the PM-KUSUM program, the government aims to set up 10,000 MW of grid-connected solar power projects of individual project size of up to 2 MW. The successful bidder should furnish a performance bank guarantee of Rs 500,000/MW for the capacity awarded within 30 days of the letter of award.

The distribution companies (DISCOMs) in whose area substations the solar power projects are proposed to be set up should enter into power purchase agreements (PPAs) with successful bidders for 25 years. UPNEDA has set a ceiling tariff of Rs 3.10/kWh for the tender.

The selected developer will be responsible for constructing the dedicated 11 kV line from the solar power project to the substation, the construction of the bay, and related switchgear at the substation where the project will be connected to the grid and metering is done. Individual farmers, groups of farmers, cooperatives, panchayats, farmer producer organisations, and water user associations who have their land or have land lease agreements can participate in the tender.

If the bidders concerned fail to arrange the equity needed to set up the projects, they may opt to erect the project through a developer by signing a land lease agreement. In such a case, the landowner will get lease rent. The developer’s net worth who sets up the project on leased land should not be less than Rs 10 million/ MW of the quoted capacity.

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