UPNEDA seeks bids for 2.921 MW Solar Projects O&M contract

The initiative encompasses 16 mini-grids, totalling 2.332 MW, and 30 DDG solar projects with a combined capacity of 580 kW.

Interested parties have until January 29, 2024, to submit their bids, with bid openings scheduled for the following day.

Prospective bidders are required to furnish a tender fee of Rs 11,800 (~$142) and an earnest money deposit of Rs 25,000 (~$300).

Upon selection, successful bidders must provide a performance security amounting to Rs 2,000 (~$24)/kW of quoted capacity before executing the contract agreement. The bank guarantee is subject to renewal every five years.

Acquiring sites in their current state is a prerequisite for selected bidders, and the maximum right-to-use tenure is set at 20 years, with UPNEDA conducting reviews every five years. Unsatisfactory reviews may prompt UPNEDA to take appropriate actions, including penalties. Right-to-use charges for solar projects are calculated on a per-kilowatt, per-month basis and are payable annually to UPNEDA.

The electricity generated by these solar projects can be supplied to local residents for household consumption, MSME customers for small-scale business operations, and farmers for running tube wells for irrigation purposes.

Bidders must demonstrate a minimum of five years of experience in establishing, operating, and maintaining at least two mini-grids with a cumulative capacity of 25 kW or more. Documentary evidence, such as completion certificates from the relevant agency, must be submitted.

The average annual turnover of bidders in the best-performing three of the last five financial years should be no less than Rs 15,000 (~$180)/kW of quoted capacity. In the case of consortium or partnership firms, only bidding companies or lead partners with a minimum 51% equity turnover will be considered.

Notably, UPNEDA recently called for bids for an O&M contract for 2.89 MW of mini-grid and DDG solar projects based on a revenue model.