MP Power Management invited bids to Procure Energy Storage

M.P. Power Management Company, Jabalpur (MPPMCL) has invited competitive bids for the procurement of 500 MW energy storage capacity for six hours of discharge with a maximum of four hours of continuous discharge for 40 years from pumped hydro storage projects connected to the Inter-State Transmission System (ISTS).

From the projects commissioned or to be created anyplace in India, the projects must be developed on a "Build-Own-Operate-Maintain" (BOOM) basis. The deadline for proposal submissions is November 6, 2023.

Bids will be accepted and opened on the same day. Bidders must pay a tender and application fee of $10,000 (US$120) + GST at 18%. Bidders must submit a deposit of 500,000 ($6,006.7)/MW as an earnest money deposit.

Within 21 days of receiving the notice of award, the successful bidders must present a performance bank guarantee worth 1.2 million ($14,417)/MW. Bidders must supply a minimum capacity of 100 MW from a single location.

A bidder may submit proposals for projects at numerous sites with the following conditions:- Each location must have a minimum capacity of 100 MW.
For each of these locations, a single offer should be submitted.
Bids for a maximum capacity of 500 MW can be submitted.

If the same corporation, including its parent, ultimate parent, affiliates, or group entities, submits numerous bids, all offers from the group are declared invalid. Pumped hydro storage projects can be located anywhere in India. Projects launched or commissioned after March 8, 2019, at the inception stage, projects under construction, and projects not yet commissioned will be considered.

This is subject to the requirement that these initiatives have not previously been approved or included in any other central or state programs, and that they have no existing responsibilities. The projects must be completed within 72 months or six years of signing the Pumped Hydro Storage Power Procurement Agreement (PHSPPA). According to the PHSPPA, the maximum period for full project commissioning is ten years from the date of signing the agreement.

To reduce technology-related risks and assure Project completion on schedule, only commercially established and operational technologies must be used. Bidders must have successfully completed EPC or construction projects in the infrastructure field, such as power, hydroelectric, water body projects, dams, metro, roads, reservoirs, and tunnels, with a total project cost equal to or greater than the amount calculated at a rate of $20 million ($240,255)/MW for the quoted capacity.

The bidders' net worth as of the end of the fiscal year 2022-23 must be at least 100% of their paid-up share capital, with a minimum of $15 million ($180,220)/MW based on the total capacity quoted by the bidders. Madhya Pradesh issued recommendations in May to encourage the construction of pumped hydro storage projects, clarifying the procedure for project site allocation, tax exemptions, and project completion dates.

News by Rahul Yelligetti