With an investment of ₹350 crores, the tender is a commendable step towards reducing carbon footprint and promoting sustainable practices.
The Tamil Nadu Cooperative Milk Producers’ Federation (TCMPF) has initiated a bidding process to procure 5 MW of daily power from renewable sources. Under this initiative, TCMPF is looking to secure a stable supply of power, specifically from solar or wind projects or excess power from generators, through open access.
The agreement stipulates that the developer must supply a minimum of 20,000 units of power daily to meet TCMPF’s contractual demand of 30 MW per day, which translates to an annual consumption demand of approximately 43.8 GWh.
The bidding process has a set deadline for bid submissions, which is January 28, 2024. The bids will be opened the following day. This timeline provides potential bidders with a clear schedule to prepare and submit their proposals.
The successful bidder will be required to enter into a ten-year power purchase agreement (PPA) with TCMPF. This long-term commitment ensures a steady supply of power for TCMPF and offers the developer a stable revenue stream. The PPA also includes a provision for a possible extension of another ten years, subject to mutual agreement between TCMPF and the developer. The developer will also be responsible for evacuating the generated power to the grid of the Tamil Nadu Generation and Distribution Corporation.
The tender’s estimated value is around ₹350 crores, representing a significant investment in renewable energy procurement. To participate in the bidding process, bidders are required to submit an earnest money deposit (EMD) of ₹200,000. Successful bidders will then need to sign an agreement and provide a security deposit of ₹250 crores within 15 days of receiving the letter of award. This deposit, valid for 18 months, serves as a financial guarantee for the execution of the contract.
In an effort to support local businesses, firms located within Tamil Nadu and holding either a Udyam Registration Certificate or a National Small Industries Corporation certificate may be exempted from paying the EMD. This exemption is a positive step towards encouraging local participation and investment in renewable energy projects.