NHPC Limited (NHPC) has revealed its intent to secure 1,500 MW of power from ISTS-connected Wind-Solar Hybrid Power Projects through a transparent Tariff-Based Competitive Bidding (TBCB) process. This initiative includes online bidding and a reverse auction, culminating in 25-year Power Purchase Agreements (PPAs) with the selected bidders.
NHPC's vision is to collaborate with Hybrid Power Developers/Hybrid Power Generators (HPD/HPG) in the establishment of ISTS-connected Solar-Wind Hybrid Power Projects, with or without Energy Storage Systems (ESS), anywhere in India. The generated power will be procured by NHPC and subsequently distributed to state utilities, distribution companies (Discoms), and other beneficiaries.
In its role as an intermediary nodal agency, NHPC will facilitate a seamless transition between power procurement from HPDs and its sale to the end-user entities, all operating on a back-to-back basis. This approach ensures the interests of both power generators and purchasers are safeguarded.
The TBCB process sets the minimum project size at 50 MW, with increments of 10 MW under the open category, resulting in a cumulative capacity of up to 750 MW. The selection of bidders follows a single-stage two-envelope bidding process, which includes a Technical Bid (Envelope-I) and a Financial Bid (Envelope-II), concluding with a reverse auction.
NHPC incentivizes bidders to participate in renewable energy growth by offering fiscal benefits, including Accelerated Depreciation, Concessional Customs and Excise Duties, and Tax Holidays, as applicable to such projects. Importantly, these incentives do not influence the selection criteria, ensuring a level playing field for all bidders.
Bidders are required to submit a single tariff for the entire capacity offered, which will remain applicable for the entire 25-year PPA period. In cases of project transfer or sale to a third party, NHPC retains the right to activate the PPA with the new owner, who must adhere to all terms and conditions.
In this initiative, HPDs bear the responsibility for establishing the Solar-Wind Hybrid Power Projects, including dedicated transmission networks up to the Interconnection/Delivery Point, incorporating various wind, solar PV, and ESS capacities. The selection process remains technology-agnostic, focusing on the overall viability and impact of the projects.
NHPC retains the discretion to withdraw the invitation for bids without specifying a reason, assuming no liability for the consequences of such a decision.
Bidders have until December 12, 2023, to submit their proposals and are required to provide an Earnest Money Deposit (EMD) of ₹35 million.
This ambitious venture by NHPC not only contributes to India's renewable energy targets but also opens doors for private sector participation in the nation's renewable energy landscape. It is expected to stimulate substantial investments and innovation in the field of wind-solar hybrid power generation across the country, reaffirming India's commitment to clean and sustainable energy sources.