Oil and Natural Gas Corp (ONGC) plans to hold auctions to select developers for its planned 1.2 GW greenfield renewable energy projects, according to a senior company executive. India's leading oil and gas producer plans to hold two rounds of auctions, each offering 600 MW, with the first round set for two months ahead, according to the executive.
ONGC plans to utilize both new projects and acquisitions to establish a green energy portfolio of 10 GW by 2030, according to the executive. "We are evaluating various models for greenfield projects, including offering end-to-end project development responsibility to a third party," the executive added.
ONGC's first tender for 600 MW will require bidders to suggest a price for the entire plant development. The minimum bid size will be 300 MW. An official mentioned that a bidder must obtain land and grid connection and execute engineering procurement and construction (EPC) for the project.
The winning bidder is required to provide a completely functional plant to ONGC by a designated deadline. Finding clients for power purchase agreements (PPA) for the projects will be the responsibility of ONGC. The second tender, maintaining the same capacity, will require bidders to supply only land and grid connections for the projects.
ONGC will issue a distinct EPC contract in addition to securing clients for the PPA. The executive stated that if the bidding process goes as scheduled, ONGC will duplicate the model for an additional 1200 MW. In this new batch of projects, the company intends to enter procurement as well, reducing the role of EPC contractors.
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