Tata Power Issues Tender for 250 MW FDRE

After a lull in FDRE (Firm and Dispatchable Renewable Energy) issuances, Tata Power has announced a 250 MW capacity FDRE tender.

The tender seeks 4 hours of power availability during peak hours defined between 1700-2400 hours. The deadline for submissions is June 4, 2025.

The tender specifies the flexibility to use wind, solar and ESS as per project design by the bidder, with the respective projects located anywhere in India, in co-location  mode or otherwise. To be built using BOO (Build Own and Operate) mode, bidders will sign a 25 year PPA with Tata Power, and will have 24 months after the PPA signing to set up the project and commence supplies. Financial closure is expected to be closed and reported within 12 months of the signing.PPAs have been promised within 10 days of the temporary Letter of awards.

Availability of power has been set at 100%, with upto 5% allowed to be sourced from green energy markets.  Third party supplies are allowed after meeting PPA requirements, without needing any NOC from Tata Power. With a 40% CUF, a significant wind energy component is assured in the project. Bids are allowed for a minimum of 50 MW and multiples thereof.

Successful bid range after technical and financial evaluation has been set at L1+2%.

With almost 4 GW of FDRE tenders under execution right now, bids are expected to be at prices over Rs 4.50/kW, perhaps even going as high as Rs 4.75/kW, considering previous tender results from NTPC and others. Higher ISTS charges are also likely to impact bids considering the end of 100% exemption by June this year, unless there is an extension granted as many are asking for.

The tender is a good template of what developers would typically seek in such FDRE tenders, in allowing for a degree of flexibility and options for eventual winners.