Madhya Pradesh Urja Vikas Nigam Limited (MPUVNL) has invited bids for 25 MWp rooftop solar projects for industries under RESCO model; tender closes on May 10, next month. Following the historic results of achieving low tariff of Rs 1.38/ unit in its RESCO (Renewable Energy Service Company) I&II rooftop solar tender last year, MPUVNL has now invited bids for 25 MWp solar rooftop projects under RESCO mode for industries in Madhya Pradesh.
New and renewable energy department principal secretary Manu Srivastava, officials of MPUVN, MPIDC, World Bank and International Solar Alliance (ISA) explained the bid design, capacity requirements, data room access to the developers’ and welcomed their suggestions to start the rooftop project work on time.
Shrivastava said, “Rooftop solar project under RESCO model is an attractive option for industries to implement and achieve significant savings on their electricity bills. MPUVN and MPIDC have joined hands in this effort to aggregate demand and achieve scale for a competitive tariff from RESCOs. For the first time, state agencies have come together for implementation of a market-based rooftop solar tender for industries without subsidy support from Central or the State.”
Over 700 industries in Mandideep industrial area close to Bhopal have been identified for the project. The project is being implemented jointly with MP Industrial Development Corporation (MPIDC), which has provided land on lease to the industries.
MPIDC will be a co-signatory of the power purchase agreement (PPA) and is offering payment assurance for the developer. There is no subsidy in the project. The aim of the exercise is to de-risk the project and to have an appropriate allocation of risk between developers, industry, MPIDC & MPUVN.
The World Bank (WB) through State Bank of India (SBI) and Asian Development Bank (ADB) through Punjab National Bank (PNB) will provide concessional loan to successful bidders under the project. Concessional funding from IREDA is also available. ISA has acknowledged MP’s RESCO projects, by web-casting the pre-bid proceedings to ISA member-countries and by sending a member from MPUVN as a part of ISA expert group to the Republic of Ghana for joint efforts to roll out rooftop solar projects in Ghana.
Price Water House Coopers is the transaction advisor to Madhya Pradesh new & renewable energy department and MPUVN for the project. Ernst and Young is the SBI-WB Technical Assistance (TA) consortium lead to MPUVN. Around 34 bidders from across the country attended the pre-bid meeting and got the opportunity to interact with MPUVN representatives. Important topics, such as parameters on project, RFP features, power purchase agreement clauses, compensation and termination clauses, data room, etc were discussed in detail in today’s meeting.