Madhya Pradesh Issues 800 MW Wind Tender With Greenshoe Option

Madhya Pradesh Power Management Company Limited (MPPMCL) has invited bids for 800 MW of wind power projects, with an additional capacity of up to 800 MW under a Greenshoe option. It’s accepting bids until July 23, 2025.

MPPMCL issued the tender on behalf of Madhya Pradesh’s three distribution companies — Madhya Kshetra Vidyut Vitaran Company Ltd, Poorv Kshetra Vidyut Vitaran Company Ltd, and Paschim Kshetra Vidyut Vitaran Company Ltd. The tender aims to help meet the state’s Renewable Purchase Obligation (RPO) targets and the future power needs of the Discoms.

To avoid doubt, the MPPMCL tender also clarifies that in case of ISTS connected projects, MPPMCL can consider the following ISTS Charges & Losses for evaluating the competitiveness of the project.  Additionally, MPPMCL’s tender also set the load on the initial quoted tariff for conducting the auction as follows:

The tender categories the tariff charge and tariff loss for different time durations as mentioned above.

Project Scope and Conditions

The tender mentioned that the winning bidder will be responsible for identifying land, setting up and owning the project, obtaining necessary clearances, and securing connectivity with the interstate transmission system (ISTS) or the intrastate system (InSTS), as applicable. Projects using InSTS must be located within Madhya Pradesh.

Wind power technology is mandatory. A bidder may submit only one bid, offering a minimum contracted capacity of 50 MW for ISTS-connected projects and 10 MW for InSTS-connected ones, with a maximum of 400 MW. An additional 400 MW may be awarded under the Greenshoe option.

Projects must be established at locations chosen by the developer at their own cost and risk. For ISTS-connected projects, MPPMCL will account for transmission charges and losses when evaluating bids, and these will be loaded onto the initial quoted tariff during the e-reverse auction.

Financial closure must be achieved six months prior to the Scheduled Commercial Operation Date (SCOD). For example, if the SCOD is November 25, 2025, financial closure should be completed by May 25, 2025.

Energy Supply Requirements

Bidders must declare the annual Capacity Utilisation Factor (CUF) at the time of bid submission. Developers will be allowed one revision within three years of SCOD, but the revised CUF must exceed the originally quoted figure. Beyond this, the CUF will remain fixed for the duration of the power purchase agreement (PPA).

The CUF must not fall below 22% at any point. Energy supply must range between 80% and 120% of the declared or revised CUF throughout the PPA term. MPPMCL may relax the lower limit in cases of force majeure.