Reading Time: 2 minutes
The Solar Energy Corporation of India Limited (SECI) has issued a Request for Selection (RfS) document for the development of a 500 MW ISTS-connected offshore wind power project in Gujarat. The tender, issued on September 13, 2024, is part of the first tranche of offshore wind projects in India. The aim is to select a Wind Power Developer to build, own, and operate the project under a Power Purchase Agreement (PPA) with SECI for 25 years. The project will be located in the Gulf of Khambhat, off the coast of Gujarat.
Interested bidders are required to submit an Earnest Money Deposit (EMD) of ₹37,00,000 per MW of project capacity, which must be in the form of a bank guarantee valid for 12 months. The total project capacity of 500 MW means an EMD of ₹185 crore will be required from bidders. Additionally, the selected developer must furnish a Performance Bank Guarantee (PBG) of ₹55,50,000 per MW. This PBG is to ensure compliance with the project’s timelines and other obligations outlined in the contract.
SECI will act as the intermediary nodal agency for the procurement of power from the project, selling it to Gujarat Urja Vikas Nigam Limited (GUVNL). The offshore wind power developer will be responsible for setting up the entire project, including the transmission infrastructure required to connect it to the ISTS network. The developer must also obtain all necessary approvals and permits, including Stage II clearances from various government ministries and departments, such as the Ministry of Environment and Forests and Climate Change and the Ministry of Defence.
The project is eligible for Central Financial Assistance through the Viability Gap Funding (VGF) scheme. The maximum VGF allowed is ₹8.128 crore per MW, and it will be disbursed in four phases—25% upon completion of foundation work, 35% after commissioning 50% of the project, another 35% after commissioning the full project, and the remaining 5% after one year of successful operation.
Bidders are expected to declare their annual Capacity Utilization Factor (CUF), with the project required to maintain an annual CUF of at least 40%. The project is also expected to comply with all relevant regulations, including the Central Electricity Regulatory Commission (CERC) regulations on grid connectivity and safety standards.
The deadline for bid submissions is on 12th December 2024. Bidders must complete all formalities, including the payment of non-refundable document fees of ₹50,000 and a bid processing fee of ₹20 lakh. The bidding process will follow a two-envelope system—one for technical and commercial bids and the other for the financial bid.
The developer has the option to utilize tax incentives such as accelerated depreciation, concessional customs and excise duties, and tax holidays. However, the availability of these incentives will not affect the bid evaluation. The project is expected to be one of the largest offshore wind projects in India, marking a significant step towards the country’s renewable energy goals.
