RECPDCL Issues RFP for TSP to Support Green Hydrogen Project in Tuticorin

REC Power Development and Consultancy Ltd. (RECPDCL), a wholly owned subsidiary of REC Ltd. has officially issued a Request for Proposal (RFP)  for the selection of a Transmission Service Provider (TSP)  to establish an Inter-State Transmission System for Green Hydrogen and Green Ammonia Projects in the Tuticorin Area, Tamil Nadu.

The RFP outlines comprehensive technical and financial requirements that potential bidders must meet to qualify for the project. Amongst the key technical stipulations, bidders should have experience in either developing infrastructure projects with a cumulative capital expenditure of at least INR 1,582 crore over the last five years or in construction projects where they have received similar payments for completed works. Each individual project referenced in this criterion must have a capital expenditure of no less than INR 316.40 crore.

Financial stability is also a critical requirement. Bidders must possess a net worth of at least INR 632.80 crore, calculated based on the unconsolidated audited annual accounts from any of the last three financial years prior to the bid submission deadline. Additionally, the net worth for these years must not be negative, further emphasising the need for bidders to demonstrate robust financial health.

The demand for electricity in support of these green projects is projected to grow significantly in the coming years. By 2027, cumulative electricity demand in the Tuticorin area is anticipated to reach 2,900 MW, escalating to 5,645 MW by 2029 and peaking at 7,015 MW by 2030.

It may be mentioned that in response to this escalating demand, the Central Electricity Authority (CEA) and the Central Transmission Utility (CTU) have identified a dedicated transmission system to ensure efficient power delivery to the region.

Powergrid Corporation of India Ltd. (POWERGRID) will play a pivotal role in the project's infrastructure development. The company is set to provide the necessary support, including the upgrade of existing substations to a rated voltage level of 765 kV.

Furthermore, the Transmission Service Provider (TSP) will be responsible for the establishment, operation, and maintenance of the transmission system on a build, own, operate, and transfer (BOOT) basis. This includes overseeing all project phases, from conducting initial surveys and preparing detailed project reports to managing construction and commissioning activities.

The RFP document includes detailed terms and conditions for the qualification and selection of the Transmission Service Provider for the project.  A non-refundable fee of INR 5,00,000 (Rupees Five Lakh Only) or USD 7,000 (US Dollars Seven Thousand Only), plus 18 perent GST, is required, with payment due by December 19, 2024.  An online non-refundable registration fee of INR 10,000, plus applicable GST, must also be paid.

The bidding timeline has been meticulously outlined, with key dates established for potential bidders. The RFP was issued on October 17, 2024, and bidders are encouraged to submit written clarifications or amendments by November 6, 2024. Pre-bid meetings are scheduled for November 8, 2024, with the issuance of written clarifications and revised RFP documents set for November 25, 2024. Bids must be submitted online by December 20, 2024, followed by the opening of technical bids on the same day.

Shortlisting of qualified bidders will occur by December 30, 2024, with financial bids to be opened on December 31, 2024. An electronic reverse auction for financial bids will take place on January 1, 2025, leading to the selection of the successful bidder and issuance of a Letter of Intent (LOI) on January 9, 2025.

This transmission system is critical not only for meeting the immediate electricity demands of the Green Hydrogen and Ammonia projects but also aligns with India's broader ambitions of expanding its renewable energy capacity and transitioning to sustainable energy solutions.