Railways invites tenders for 750 MW of 24/7 renewable energy

REMCL, a partnership between Indian Railways and RITES, has announced an invitation to bid for the procurement of 750 MW of round-the-clock (RTC) power from grid-connected renewable projects with or without storage across India for a duration of 25 years. years, acting on behalf of Indian Railways.

The deadline to submit offers is October 30, 2023 and offers will be announced on November 2. Bidders are required to pay a security deposit of Rs 980,000 per MW of the quoted capacity. The successful bidder will be required to submit a bank performance guarantee worth Rs 2 crore/MW of the allocated capacity.

Additionally, they have to pay a success fee of Rs 100,000/MW along with 18% Goods and Services Tax to REMCL. Each offer must have a minimum capacity of 100 MW. The annual availability of the project is set at 75% for the first four years, increasing to 85% for the remaining years.

In the event of a power supply shortage, promoters will be responsible for paying 200% of the applicable rate for that specific contract year, calculated annually or by time blocks. The electricity supply must include energy from the storage system, provided that renewable sources are used.

The fee is expected to be mutually agreed upon by all parties involved. The rate is leveled annually based on a 7.7% discount factor. To limit technological risks and ensure timely commissioning, only established and operational technologies should be used for these projects.

If included, energy storage systems (ESS) can be part of the project or connected separately by the developer to a third party. Fundamentally, the ESS energy supplied for this project must come from renewable sources.

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