REMCL invites bids for setting up 15 MW solar project with battery storage system

• REMCL said that a 25-year Power Purchase Agreement (PPA) will be signed with the developer at a tariff that is discovered during the bidding process

• According to the tender document, the capacity utilisation factor of the solar project should be at least 17 percent for the PPA period

New Delhi: The Railway Energy Management Company Ltd (REMCL), a joint venture of RITES Ltd and the Indian Railways, has floated a tender inviting bids for setting up a 15 MW solar project, with a 7 MW/14 MWh battery energy storage system (BESS), on railway land at Butibori in Nagpur. REMCL said that a 25-year Power Purchase Agreement (PPA) will be signed with the developer at a tariff that is discovered during the bidding process. The bidding process will open on August 9 and close on the same day.

Capacity utilisation factor of solar project should be 17%, BESS availability 98%

According to the tender document, the capacity utilisation factor of the solar project should be at least 17 percent for the PPA period, and the BESS availability should be 98 percent. To participate in the competitive bidding process, the bidder should promote only commercially established and operational technologies to minimise the technology risk and to achieve timely commissioning of the project.

Bidder's net worth should be Rs 4 cr/MW

The bidder's net worth should be equal to or greater than Rs 4 crore/MW of the quoted capacity for the bid, as of the last date of the previous financial year. The net worth to be considered for the purpose will be the cumulative net worth of the bidding company or consortium together with the net worth of the affiliates of the bidders.

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The bidder's minimum annual turnover should be Rs 3.15 crore/MW of offered capacity during the last financial year. The bidder should also have an approval letter from the lending institution, committing a line of credit for a minimum of Rs 79 lakh/MW of the quoted capacity towards meeting the working capital requirement of the project.

The backdrop

The Railways has large tracts of land along its tracks which can be leveraged to set up solar power generation capacities. In June 2020, REMCL secured its largest mandate from the Indian Railways for handling the tendering, installation, supervision and managing power supply from 3 GW solar power plants to be set-up on vacant Railway Land. This is significant because it will help the national transporter cut down its electricity bill. It consumes 12 BU of electricity annually. The Railways plans to become a "net zero" carbon emitter by 2030.

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