Kerala agency issues tender for 250 MW by 2006

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Kerala's agency for Non-conventional Energy and Rural Technology (ANERT) has released a tender for the development of 250 MW in wind projects by 2006. The agency plans to lease 154 hectares of land at Ramakkalmedu for projects, but manufacturers and developers can propose development on private land already acquired or proposed to be acquired in and around proven sites. Preference will be given to bids that provide the highest generation per square metre of land, are set for early completion, and that meet the total cost of civil and electrical infrastructure development. Approved firms will need to enter into a separate Memorandum of Understanding with ANERT and provide a bank guarantee for an amount equivalent to 0.5% of the capital cost of the project within 30 days of acquiring approval. Under the state's policy, power generated from renewable energy sources and then sold to Kerala State Electricity Board (KSEB) was fixed at INR 2.80/kWh in 2000-01 with a 5% annual increase for up to five years of operation. Power in excess of requirements may be banked with the utility for six months, with a wheeling charge of 5%. Furthermore, in a bid to attract developers, KSEB will foot the initial bill for sub-station and transmission infrastructure -- 50% of this cost though will have to be paid by developers at a later date. Settlements regarding wheeling, banking or sale of power will be on a monthly basis and the power purchase agreement with KSEB will be for a minimum of five years.

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