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					</table><p>The Solar Energy Corporation of India (<a href="https://www.seci.co.in/" target="_blank" rel="noopener">SECI</a>) has invited bids for the installation, testing, and commissioning of 45.6 MW wind power project at Ramagiri in the Sathya Sai district of Andhra Pradesh.</p>
<p>The successful bidder will also be responsible for the project&#8217;s operation and maintenance for ten years.</p>
<p>The scope of work includes design, engineering, procurement, and supply of equipment and materials; testing at the manufacturer&#8217;s works; multi–level inspections; packing and forwarding; and the supply, receipt, unloading, and storage of all equipment at the site.</p>
<p>It also includes associated civil works, services, permits, licenses, installation, and incidentals; insurance at all stages; erection, testing, and commissioning for a 45.6 MW wind power project; and performance demonstration with associated equipment and materials, on a turnkey basis.</p>
<p>The last date to submit bids is August 19. Bids will be opened on the following day.</p>
<p>Bidders must submit ₹84.37 million (~$876,132) as an earnest money deposit.</p>
<p>Bidders must fulfill any of the following requirements:</p>
<ul>
<li>Bidders should have, as an engineering, procurement, and construction (EPC) contractor, executed wind power projects on a turnkey basis of cumulative capacity not less than 22.82 MW in the last seven years as on the last date of bid submission. However, such projects must have been operational for at least six months prior to the last date of bid submission. Also, they should have experience in the EPC execution of two wind power projects, each with an individual capacity of at least 4.56 MW, in the last seven years as on the last date of bid submission. However, such projects must have been in satisfactory operation for at least six months prior to the last date of bid submission.</li>
<li>They should have experience in execution of wind projects as a developer of cumulative Capacity not less than 22.82 MW in the last seven years as on the last date of bid submission. However, such grid-connected wind power project capacity must have been operational for at least six months prior to the last date of bid submission. Also, they should have experience in the execution of wind projects as a developer of at least two grid-connected wind power projects, each with an individual capacity of 4.56 MW or above, in the last seven years up to the last date of bid submission. However, such projects must have been in satisfactory operation for at least six months prior to the last date of bid submission.</li>
</ul>
<p>The minimum average annual turnover of bidders in the last three financial years should be ₹1.27 billion (~$13.19 million).</p>
<p>Also, the net worth of bidders during the last financial years should be positive.</p>
<p>Additionally, they should have a minimum working capital of ₹903.9 million (~$9.39 million) as per the last audited annual financial year statement. If the bidder’s working capital is inadequate, the bidder should supplement this with a letter from the bidder’s bank, confirming availability of the line of credit for more than or equal to ₹903.9 million (~$9.39 million) to meet the working capital requirement of this particular project.</p>
<p>The wind turbine model should be listed in the Revised List of Models and Manufacturers (RLMM) issued by the Ministry of New and Renewable Energy (MNRE) as on the date of bid submission.</p>
<p>Recently, SECI <a href="https://www.mercomindia.com/seci-announces-winners-of-2-gw-ists-connected-wind-energy-auction" target="_blank" rel="noopener">announced</a> the winners of the auction to set up 2,000 MW of interstate transmission system (ISTS)-connected wind power projects across India (Tranche XX).</p>
<p>In February, KP Energy, Ganeko Three Energy, Waaree Forever Energies, Opera Energy, Purvah Green Power, Vena Energy Aura, and Refex Holding <a href="https://www.mercomindia.com/kp-energy-waaree-and-vena-energy-among-winners-of-secis-1-2-gw-wind-auction" target="_blank" rel="noopener">won</a> SECI’s auction to develop 1.2 GW of ISTS-connected wind power projects across India under Tranche XIX.</p>


SECI Invites Bids for 45.6 MW Wind Project in Andhra Pradesh


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					</table><p>The Solar Energy Corporation of India (<a href="https://www.seci.co.in/" target="_blank" rel="noopener">SECI</a>) has invited quotations for a short-term working capital credit facility of up to ₹10 billion (~$118.23 million) to help it make payments to renewable energy developers.</p>
<p>SECI seeks to raise a fund-based credit facility from the bank for one year with an added option to renew it for another year.</p>
<p>Facility tie-ups can be done with multiple banks, but the maximum facility will be up to ₹12 billion (~$141.88 million) with a minimum tie-up of ₹500 million (~$5.91 million). The facility may also be offered as a non-fund-based credit facility in the form of a bank guarantee/standby letter of credit as a secondary credit facility.</p>
<p>Banks will be selected for fund-based credit facilities on one-year rates. The drawal limits will be based on the rates provided by the bank chosen at the time of the actual drawal, subject to maximum spread. The existing fund-based limits will be curtailed, provided any limits are required for host-to-host payments.</p>
<p>Drawal must be facilitated as per requirements and for a minimum of seven days to a maximum of 30 days.</p>
<p>SECI has availed credit facilities from various banks amounting to ₹30.75 billion (~$363.57 million).</p>
<p>SECI has commissioned solar, wind, and hybrid projects up to 23 GW cumulative capacity as of September 30, 2024. SECI is making an average monthly payment to developers in the range of ₹13 billion (~$153.70 million) and is likely to increase as more projects are commissioned.</p>
<p>SECI <a href="https://www.mercomindia.com/seci-disbursements-february-2024" target="_blank" rel="noopener">paid</a> solar and wind power producers ₹9.84 billion (~$117.9 million) for the energy purchased in February 2024, up 5% from January.</p>
<p>In 2023, SECI <a href="https://www.mercomindia.com/seci-capital-credit-facility-6-billion" target="_blank" rel="noopener">invited</a> quotations for a short-term working capital credit facility of up to ₹6 billion (~$72.3 million) to help it make monthly payments to solar, wind, and hybrid energy projects.</p>


SECI Invites Bids for ₹10 Billion Short-Term Working Capital Credit Facility

<p>The Ministry of Power (<a href="https://powermin.nic.in/" target="_blank" rel="noopener noreferrer">MoP</a>) has advised the state electricity regulatory commissions (SERCs) to establish the reduction of generation or transmission tariffs in cases of full or advance payments by the distribution companies (DISCOMs) and procurers to the generating stations or transmission companies.</p>
<p>The MoP has written a letter to the Central Electricity Regulatory Commission (CERC), SERCs, and Joint Electricity Regulatory Commissions (JERCs) about the decrease in the cost of power due to prepayment in the entire value chain of the power sector.</p>
<p>The ministry has also suggested that the retail tariff for the consumers should also be reduced in case the DISCOMs pay the tariff in advance.</p>
<p>As clarified by a project developer, “only the projects for which tariffs are determined by the regulatory commissions will be considered for this, which would mean most thermal projects and the projects which fall in the feed-in-tariff regime will be considered. But solar and wind projects and any projects for which tariffs are determined through competitive bidding would not be generally considered here.”</p>
<p>The move comes in the wake of discussions held during the Power Ministers’ Conference in October 2019 in the state of Gujarat. During the meet, it was decided that an appropriate rebate mechanism may be developed by the appropriate state commission for DISCOMs that opt for advance payments.</p>
<p>The other benefit of the advance payment is that the state commissions may also provide suitable rebate or reduction in generation tariff for the power purchased from the competitively bid generating projects. In such cases, the supplier and procurer can mutually agree on such a mechanism, states the MoP.</p>
<p>The ministry has also stated that if the DISCOMs make payments even one day prior to the due date to either the generating or transmission company or by the consumer to the distribution company, then “there may be either no requirement or reduced requirement of working capital” by the generating or transmission company or DISCOMs, if the consumers have made a prepayment.</p>
<p>The present system of rebate in case of the “timely payment” does not fully compensate against the reduced requirement of working capital.</p>
<p>The Ministry has asked for an appropriate Commission to act on this matter and to submit an Action Taken Report (ATR) to the Forum of Regulators, which in turn has to provide a monthly ATR to the Ministry.</p>
<p>In July 2019, Mercom reported that the MoP had <a href="https://mercomindia.com/discom-heat-letter-credit-advance-payment-power/" target="_blank" rel="noopener noreferrer">issued</a> procedural guidelines for the scheduling of power to the distribution companies in case of non-maintenance of the line of credit under the payment security mechanism.</p>
<p>Minister of Power R.K. Singh had earlier <a href="https://mercomindia.com/discoms-lc-payment-security-mechanism/" target="_blank" rel="noopener noreferrer">announced</a> that it would be mandatory for DISCOMs to open and maintain adequate Letters of Credit as the payment security mechanism under the power purchase agreements.</p>
<p>Image credit: USFWS Mountain-Prairie [Public domain]</p>


Ministry of Power Proposes Tariff Rebate if DISCOMs Offer Advance Payments

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