REMCL Floats Tender for 17 MW Solar Project with 12.5 MW/50 MWh BESS on Railway Land in Gujarat

REMCL Ltd., a joint venture of the Ministry of Railways and RITES Ltd., has invited bids for the selection of solar and battery energy storage system (BESS) developers to set up a 17 MW Inter State Transmission System (InSTS) connected solar photovoltaic project integrated with a 12.5 MW/50 MWh Battery Energy Storage System on vacant railway land at Dahod in Gujarat.

The project will be implemented under the Build Own Operate (BOO)/Renewable Energy Service Company (RESCO) model through a tariff based competitive bidding process.

The tender aims to support Indian Railways' renewable energy procurement programme by supplying firm and dispatchable solar power for traction requirements. The successful bidder will sign a 25 year Power Purchase Agreement (PPA) with the designated Zonal Railway or Division of Indian Railways for the supply of power.

According to the Request for Selection (RfS), the selected Solar Power Developer (SPD) will be responsible for designing, financing, constructing, owning and operating the solar and battery energy storage project, including the complete transmission network up to the interconnection or delivery point. The developer will bear the entire cost of project implementation, secure all statutory approvals, obtain grid connectivity and execute the project in accordance with the provisions of the RfS and the PPA.

The project will be developed on vacant railway land at Dahod district under the jurisdiction of Western Railway in Gujarat. The land will be provided by Indian Railways on an 'as is where is' basis under a Land Use Permission Agreement (LUPA). The selected developer will be responsible for site preparation, obtaining statutory approvals and carrying out vegetation clearance, including tree, bush and shrub removal wherever required. Alternatively, developers may optimise project design to avoid tree cutting. A lump sum land administrative charge of INR  50.67 lakh, inclusive of GST, for a period of 27 years will be payable before execution of the LUPA. REMCL stated that the land is expected to be handed over within 60 days from the effective date of the PPA, with any delay resulting in a corresponding extension of financial closure and commissioning milestones.

The selected developer will also be responsible for obtaining connectivity with the State Transmission Utility (STU) or Inter State Transmission System (InSTS) and constructing the evacuation infrastructure. This includes laying the transmission line from the project site to the nearest STU substation, arranging land, right of way (RoW) and all associated approvals. According to REMCL, the nearest 132/33 kV GETCO substation is located approximately 3 km from the project site, although bidders are required to verify the details independently.

The tender specifies deployment of solar photovoltaic technology integrated with battery energy storage while remaining technology agnostic. REMCL clarified that only battery systems charged through solar power will qualify under the scheme, while BESS charged using any other energy source will not be considered solar power. Developers will also have the flexibility to change the battery technology during the PPA tenure at their own cost and risk after informing REMCL and the buying entity.

The project comprises 17 MW of solar generation capacity coupled with a 12.5 MW/50 MWh Battery Energy Storage System, with developer selection to be carried out through electronic bidding followed by an electronic reverse auction.

The bidding process will follow a single stage, two envelope e tender format. Each bidder, including its parent company, affiliate, ultimate parent or group companies, may submit only one bid for the entire 17 MW contracted capacity. The maximum capacity that can be allocated to a bidder or its related entities is also limited to 17 MW, while multiple bids from companies belonging to the same group will render all such bids invalid.

The tender document fee has been fixed at Rs. 50,000 plus GST, while the bid processing fee is Rs. 3.40 lakh plus GST. Bidders must also furnish an Earnest Money Deposit (EMD) of Rs. 16.24 lakh per MW in the form of a bank guarantee or insurance surety bond.

The successful bidder will also be required to submit a Performance Bank Guarantee (PBG) of Rs. 40.60 lakh per MW to the buying entity before signing the Power Purchase Agreement. The PBG must remain valid up to nine months after the Scheduled Commissioning and Supply Date (SCSD) of the project. REMCL will return the EMD only after successful verification of the PBG, and the PPA will be executed only after the guarantee has been verified. Where the validity of the PBG falls short of the prescribed period, the developer will be required to extend it before expiry. Failure to furnish the PBG within the stipulated timeline will be dealt with in accordance with the provisions of the RfS.

REMCL stated that the bidding process has been prepared in accordance with the Ministry of Power's Guidelines for Tariff Based Competitive Bidding for Procurement of Firm and Dispatchable Power from Grid Connected Renewable Energy Projects with Energy Storage Systems, issued on June 9, 2023, along with subsequent amendments applicable up to the bid submission deadline.

The agency clarified that no separate Central Financial Assistance has been envisaged for the project. However, developers will be free to avail themselves of fiscal incentives such as accelerated depreciation, concessional customs and excise duties, tax holidays and other benefits available under prevailing government policies. These incentives will not influence bid evaluation or tariff determination.

REMCL, acting as the nodal agency for Indian Railways, will facilitate the bidding process until the selection of the developer and execution of the PPA. The buying entity will procure the generated renewable power for railway traction requirements in Gujarat and other eligible open access railway zones.