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Railway launches tender to buy 695MW of renewable electricity


REMC Limited has issued a call for bids to acquire 695 MW of round-the-clock (RTC) power from grid-connected renewable energy projects, with or without storage, to complement the existing 500 MW Ircon Renewable Power (IRPL) and 195 MW Rewa Ultra Mega Solar (RUMSL) solar projects.


The envisioned RTC power supply will integrate with the ongoing power supply from the IRPL and RUMSL solar projects. The chosen project developer is expected to supply power during time blocks when the existing projects are not generating power, ensuring fulfillment of annual and time block availability requirements.


Separate bids are required for the two tandem projects, and the deadline for bid submission is February 14, 2024, with bid opening scheduled for February 16.

A bid processing fee of ₹10 lakhs is required of all bidders. Additionally, they need to provide a separate earnest money deposit of ₹980,000/MW for each program.

A performance bank guarantee of ₹20 lakhs/MW must be submitted by the chosen bidders at least seven working days before the power purchase agreement (PPA) is signed. In addition, ₹100,000/MW is required as success charges.


The IRPL project has a minimum bid capacity of 100 MW, while the RUMSL project requires a minimum of 50 MW. Initial four-year annual availability for both projects is set at 75%, increasing to 85% for the remaining contract years. Time-block-wise availability mandates a minimum project availability of 50% throughout the contract tenure.

Developers are responsible for securing land for the projects, which must be commissioned within 24 months of signing the PPA.


Tariff negotiations are anticipated to result in mutually agreed-upon rates, with yearly tariffs levelized based on a discounting factor of 7.7%.


To mitigate technological risks and ensure timely commissioning, only commercially established and operational technologies are permitted for these projects.


Energy storage systems (ESS) may be integrated or linked separately with a third party. Notably, ESS power supplied must originate from renewable sources.


Eligible projects encompass those under construction, not yet commissioned, or already commissioned without long-term PPAs. The renewable generation components and ESS installations can be situated anywhere in India, connecting to the interstate transmission system (ISTS) network at different substations.


The net worth of the bidders must have been at least ₹3 crores/MW in the fiscal year that ended just before the bid was submitted. It is required that each MW have a minimum yearly turnover of ₹4.8 crores during the previous fiscal year.


The internal resource generation capability, represented by profit before depreciation, interest, taxes, and amortization, should be at least ₹96 lakhs/MW during the previous financial year.


Bidders need an in-principle sanction letter from lending institutions committing a line of credit for a minimum of ₹1.2 crores/MW to meet the project’s working capital needs.

Bidders from countries sharing a land border with India are eligible only if registered with the competent authority. The use of approved solar modules and wind turbines is mandated for the projects.


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