Madhya Pradesh Wind Auction: Ayana and BPCL Secure 293 MW of 800 MW Tender Amid Significant Undersubscription

Madhya Pradesh Power Management Company Limited (MPPMCL) has concluded its 800 MW wind power auction, with the e-reverse auction held on June 30, 2026, resulting in a significantly undersubscribed outcome. Despite the participation of blue-chip energy majors, only 293 MW of the tendered capacity was awarded, leaving 507 MW (approximately 63%) unallocated. This shortfall suggests a market cautious of current pricing expectations or stringent tender conditions in the Madhya Pradesh wind sector. Successful bidders Ayana Renewable Power and Bharat Petroleum Corporation Limited (BPCL) secured capacities at a discovered tariff range of ₹4.12/kWh to ₹4.17/kWh.

Auction Results and Capacity Allocation

The auction saw BPCL emerge as the L1 bidder, while Ayana Renewable Power, a subsidiary of the high-profile ONGC-NTPC Green joint venture, secured the lion’s share of the awarded capacity. Given that less than 40% of the base capacity was filled, the likelihood of MPPMCL exercising the 800 MW Greenshoe option—which allowed for an additional 100% capacity—is virtually zero.

MPPMCL 800 MW Wind Tender Results

Ayana Renewable Power is a wholly-owned subsidiary of ONGC NTPC Green Private Limited, the 50:50 joint venture between NTPC Green Energy Limited and ONGC Green Limited. This award serves as a price-sensitive trigger for the JV, having been formally disclosed through a SEBI Regulation 30 filing.

Tender Parameters and Evaluation Framework

The Request for Selection (RfS), originally floated in June 2025, established a Build Own Operate Maintain (BOOM) model for a 25-year Power Purchase Agreement (PPA) duration. Projects can be located anywhere in India for Inter-State Transmission System (ISTS) connectivity, though Intra-State (InSTS) projects must be sited within Madhya Pradesh.

To evaluate bid competitiveness, MPPMCL utilized an ISTS “loading” mechanism (per Clause 7.16) to account for transmission charges and losses based on commissioning timelines:

ISTS Evaluation Loading Table

Technical Mandates and Financial Risk Factors

Winning Wind Power Developers (WPDs) face rigorous operational requirements and substantial financial penalties for non-performance:

1. Capacity Utilization Factor (CUF): The minimum declared annual CUF must be at least 22%. WPDs are mandated to maintain supply between 80% and 120% of this declared value.
2. Shortfall Penalties: Under Clause 8.2, if a developer fails to meet the 80% minimum CUF threshold for reasons other than Force Majeure, they are liable to pay a compensation penalty equivalent to 50% of the PPA tariff for the shortfall amount.
3. Technology & Connectivity: Mandatory use of ALMM (Wind) certified turbine models and compliance with CEA Technical Standards for Grid Connectivity.
4. Part-Commissioning Rules: For ISTS-connected projects, the minimum first-part commissioning capacity is 50 MW. For InSTS-connected projects, the minimum is 10 MW. Subsequent phases must be at least 10 MW.

Commissioning Timeline and Compliance

The Scheduled Commencement of Supply Date (SCSD) is set at 24 months from the Effective Date of the PPA. Critically, the RfS includes a caveat (Clause 7.4) stating that the SCSD shall be 24 months or six months from the expected date of completion of transmission line work, whichever is later. This provides developers a necessary regulatory buffer against delays in evacuation infrastructure.

Financial Compliance Requirements:

• Bid Security/EMD: ₹6,32,000 per MW, submitted as a Bank Guarantee valid for 12 months from the last date of bid submission.
• Performance Bank Guarantee (PBG): ₹31,60,000 per MW.
• MSME Exemption: Registered MSMEs (under NSIC/DIC/Udyog Aadhar) are fully exempt from the Cost of RfS, Bid Processing Fees, and EMD requirements.

Interconnection and Infrastructure Responsibilities

The division of responsibility for power evacuation is clearly delineated between the procurer and the developer:

• WPD Responsibilities: WPDs must identify and acquire land, install the project, and obtain grid connectivity (ISTS or InSTS). Developers bear all costs, wheeling charges, and transmission losses from the project site up to the identified Delivery Point.
• MPPMCL Responsibilities: MPPMCL is responsible for obtaining General Network Access (GNA) beyond the delivery point and will bear associated transmission charges and losses thereafter.
• Large-Scale Evacuation: For projects of 100 MW or more, MPPMCL will develop the necessary intra-state transmission lines to EHV substations via the Madhya Pradesh Power Transmission Company Limited (MPPTCL). However, if a new EHV substation is required, the WPD must provide the land, subject to MPPTCL approval.