Spike in Tendering Activity

Timelines extended for bid submission

Tendering activity in the renewable energy sector picked up pace with around 4.9 GW of capacity tendered in May 2018, as compared to 1.3 GW in April 2018. Of the total capacity, about 779.5 MW was tendered in the solar segment, 2 GW in wind, 2 GW in solar-wind hybrid and 200 MW in the bioenergy space.

At the same time, the due date for bid submission was extended for many of the previously released tenders. According to Renewable Watch, 17.15 GW of the solar and wind power tenders that have been reissued with a revised timeline for bid submission. One of the key factors for the extension of the due date is the change in bidding guidelines for all renewable energy projects. Earlier, a number of large players refrained from participating in the tenders due to uncertainty regarding provisional safeguard duty charges. The new guidelines are expected to provide much-needed respite to solar power developers as they would be compensated for any additional safeguard duty charges. In addition, the recent ruling by the Delhi High Court and the earlier ruling by the Madras High Court, disposing of petitions against the levy of a 70 per cent provisional safeguard duty for 200 days, could bring relief to developers. The courts disposed of the petitions stating that the duty has not been levied. In order to incorporate these guidelines, most of the tenders had to be reissued, thereby leading to an extension of timelines.

Another reason for extending the bid deadline is inadequate transmission infrastructure for meeting the power evacuation requirements. Many large tenders, including those launched by the Solar Energy Corporation of India (SECI) and NTPC Limited, have been retendered due to this issue.

The following tables provide details of the new tenders issued in May 2018 and the old tenders that have been reissued with revised timelines…

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