State-owned power generator NTPC, on behalf of Unión Eléctrica de Cuba (UNE), has invited global bids to set up 1,150 MW of grid-connected solar PV and 150 MW/150 MWh battery energy storage system (BESS) projects in the Republic of Cuba.
NTPC is the project management consultant to UNE for implementation of these projects. It has been working with UNE on the identification and technical evaluation of PV project sites, preparation of feasibility report, preparation of this tender document and other documents like power purchase agreement (PPA).
As per the tender document, the cumulative capacity of 150 MW/150 MWh BESS will be divided equally in three different provinces for 50 MW/50 MWh each.
The 1,150 MW PV capacity will come up at 175 locations across 15 provinces. It will be divided into three buckets (blocks) of 300-400 MW each, consisting of provinces that are nearby (western bucket, central bucket and eastern bucket). Each of these buckets will have 50 MW/50 MWh BESS located in one of the provinces near a substation. The provinces having BESS shall also be evaluated separately. There will be thus a maximum of six buckets to be evaluated separately.
UNE has already acquired the land for both the solar and BESS projects.
The prospective developer’s work includes design, financing, construction, installation, commissioning, operation and transfer/dismantling of the project. The developer will set up a totally foreign capital company “Empresa de Capital Totalmente Extranjero” (ECTE) to execute the project.
UNE will sign a 25-year power purchase agreement (PPA) with the ECTE.
A single developer may participate in any one, two or all three blocks with a minimum capacity of 50 MW. It also needs to factor in the additional cost of setting up the BESS system at time of bidding.
The bidder who offers minimum tariff for a project with a minimum capacity of 50 MW in a block shall be selected as L1. The other bidders shall be rated as L2, L3 according to their offered tariff. Bucket filling within each of these blocks is envisaged if the capacity is available.
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