THIRUVANANTHAPURAM: The Kerala State Electricity Board (KSEB) has scaled down its current wind power procurement tender from the originally planned 500 MW to 300 MW, citing practical constraints including limited wind potential, land availability issues, and grid integration challenges.
The decision affects competitive bidding process for wind power procurement within Kerala, with the board acknowledging that ground realities made the original tender size unrealistic.
Tender redesigned
The procurement tender fpr wind powerwas initially sanctioned for 500 MW capacity with a minimum bid size of 10 MW, following Ministry of Power guidelines issued in July 2023.
However, after a detailed review meeting between Kerala State Electricity Regulatory Commission (KSERC) officials and KSEB, significant modifications were deemed necessary.
“Considering the limited wind potential, scarcity of suitable land with adequate wind density, terrain and landholding constraints and grid integration limitations, the total bid capacity was proposed to be reduced from 500 MW to 300 MW,” states the internal circular dated June 30, 2025.
The Full Time Directors’ meeting held on June 20, 2025, formally approved this reduction along with several other modifications to make the tender more viable and attract broader participation.
Minimum bid size slashed
To compensate for the reduced overall capacity and encourage greater participation from developers, KSEB has proposed cutting the minimum bid capacity from 10 MW to just 2 MW. This change was specifically suggested during the KSERC-KSEB review meeting to allow smaller developers to participate in the tender process.
The board has also extended the bid submission period from the mandated 22 days to 45 days, providing developers more time to prepare their proposals for the modified tender.
Deviations from federal guidelines
The tender modifications involve several departures from the Ministry of Power’s (MoP) standard guidelines.
Earnest money deposit has been increased to Rs5 lakh per MW instead of the standard 2 per cent of estimated capital cost
Security deposit has been set at Rs7 lakh per MW rather than the guideline’s 5 per cent of estimated capital cost
In the matter of technical eligibility, multiple qualification pathways has been introduced, including options for renewable energy experience, infrastructure project completion, or financial solvency certificates
The Capacity Utilization Factor (CUF) has been set between 22 per cent and 30 per cent, suggesting that the identified wind sites may have moderate wind conditions compared to more optimal locations.
