Transcript Power Point Presentation given during preBid meeting on

Tariff-based competitive bidding for
procurement of 500 MW of solar
power in Telangana
Pre-bid Meeting 5 Sept 2014
Authorized Representative: TSSPDCL
(Southern Power Distribution Company
of Telangana Limited)
Procurers: TSSPDCL and TSNPDCL
• The purpose of this presentation is to provide a summary of the Bid
Model for the Telangana solar tender. The model essentially
revolves around a distributed generation format with projects
connected at 33kV, 132 kV and 220 kV voltage levels.
• Bidders have to rely on the bid documents available on the website
for all the terms and conditions applicable for the Bid. This
presentation only provides a quick overview and is not
comprehensive in nature. In the event of any discrepancy between
this presentation and the bid documents, the bid documents will
overrule this document.
• This presentation attempts to provide clarifications on some of the
queries raised by the Bidders but Bidders should solely rely on the
clarifications/amendments issued by the Authorized Representative
on the eProcurement platform/website as the case may be
Brief Overview and Project Scope
Project Location


Bidder is free to set up Projects anywhere in the State
Location/Project site can be changed until financial closure
Project capacity
Minimum
2 MW at Delivery Voltage of 33 kV at 33/11kV substation
Maximum 200 MW (double circuit line) 220 kV Delivery Voltage at 220/132kV
substation
Project Capacity Limits defined at each voltage level and at each s/s category under
Annexure D
Interconnection Substation
 A single Project shall be connected to a single Interconnection Substation
 But any substation can have multiple projects connected to it depending on
injection limits specified in the RfS
 Bidder shall submit a List of Preferred Interconnection Substations (At least 1 and
upto 5) where he intends to connect the entire Offered Capacity
 Allocation (in order of bid parameter) shall be done in the order of the preference
list
 After issue of LOI, Interconnection Substation cannot be changed
Tariff, Evaluation and Payment
Tariff Options (all tariffs for evaluation and payment shall be on Tariff Year basis)
Tariff Year shall mean 365 days from COD and last Tariff Year shall end on expiry of PPA
Option
Option 1 (Uniform Tariff)
Evaluation
Payment
 Bidder quotes a single Quoted Tariff shall be
Quoted Tariff uniformly applicable for the entire
applicable for the entire term of the PPA
term of PPA
 Bid Parameter is Quoted
Tariff
Option 2 (Base tariff + Esc)  Bidder quotes tariff for First  Tariff for first Tariff year
Year and Escalation (>0%) to
shall be the quoted tariff
be applied on base tariff  Tariff for first tariff year
from year 2 till year 10
shall be escalated by the
 Year 10 tariff shall apply for
escalation rate specified
year 11 till year 25
by the Bidder for each
 Bid Parameter is Levelized
year and such escalated
Tariff computed using CERC
tariff shall be paid from
discount rate (will be notified
year 2 till 10
on website 7 days prior to  Year 10 tariff shall be
bid deadline)
paid for years 11 till 25
Evaluation of Bids and allocation of
Interconnection Substations (1/3)
•
Bid Parameter under both tariff options shall be computed
– Under option 1 , bid parameter is quoted tariff itself
– Under option 2, bid parameter is levelized tariff computed based on quoted tariff
(first year), escalation rates specified by Bidder and CERC notified discount rate
•
•
All Bid parameters are ranked from lowest to highest and allocation shall
start from Bidder with first rank i.e. lowest tariff. In case bid parameters for
two bids is the same, then the bid corresponding to higher offered capacity
will be given better rank
Multiple Bids can be submitted by the Bidder. But allocation will happen in
the stacking order of bid parameter only. Hence a bidder may have two
positions in the ranking order
ILLUSTRATION
Bidder
#AB
#CD
#XY
#PQ
#AB
#MN
Bid Parameter
3.400
3.500
3.800
3.900
4.100
4.100
Offered Capacity 100 MW
80 MW
30 MW
50 MW
60 MW
40 MW
Tariff Option
Opt 2
Opt 1
Opt 1
Opt 2
Opt 2
Opt 1
Rank
1
2
3
4
5
6
Evaluation of Bids and allocation of
Interconnection Substations (2/3)
First round of allocation
•
•
•
Qualified Bidder with lowest rank will be allocated the most preferred
Interconnection Substation from the List given by the Bidder and issued LOI for
the Offered Capacity under the Financial Bid
At any stage if available capacity at the preferred s/s is less than offered capacity,
then
– Bidder can develop projects at reduced capacity
– Bidder can chose next preferred s/s from the List
If available capacity at all preferred s/s in the list is less than offered capacity, then
qualified bidder will be moved to second round of allocation
Second round of allocation
•
•
•
•
All bidders moved to second round will be again ranked in order of bid parameter
Starting with lowest bidder in second round, qualified bidders will be invited to
select any s/s from all the s/s where there is available capacity
In second round, bidder may either opt for developing projects at the available
capacity or withdraw from the process (EMD will be returned)
Subsequent to finalization of Interconnection substations with qualified bidders,
LOI will be issued
ILLUSTRATION
#AB
#CD
#XY
#PQ
#AB
# MN
Rank 1
Rank 2
Rank 3
Rank 4
Rank 5
Rank 6
Palem
Nizamsagar
Palem
Lingapur
Nizamsagar
Lingapur
Bhongir
Srinagar
Nizamsagar
Ramaram
Fatehpur
Lingapur
Haliya
Bidder
Feasible
capacity of
S/S
Offered
Capacity
S/S
allotted
(allocated
capacity)
Available
Capacity for
subsequent
allocation
Rationale for allotment
First Round of Allocation
#AB
120 (Palem)
100MW
Palem
(100MW)
20 MW
Lowest Bidder
#CD
80
(Nizamsagar)
80 MW
Nizamsagar
(80 MW)
0 MW
1st preferred s/s is available
20 MW
No sufficient capacity at 1st
and 2nd preferred s/s
Bidder opted for 3rd s/s
#XY
50 (Lingapur)
30 MW
Lingapur
(30 MW)
#PQ
20 (Lingapur)
50 MW
Bidder not willing to set up at reduced capacity. Moved to
second round
# AB
0
(Nizamsagar
60 MW
No s/s from List available in first round. Moved to second
round
# MN
20 (Lingapur)
40 MW
Lingapur
(20 MW)
0 MW
Bidder opts for reduced
capacity at preferred s/s
Minimum Project Capacity
2 MW at 33/11 KV substation
Maximum Project Capacity
200 MW on double circuit line at 220/132 kV substation
Technology
PV (technology agnostic within PV)
EMD
INR 10 Lakhs/MW of which INR 10,00,000 is through RTGS/DD
and balance through BG (210 days from bid deadline)
Processing Fee
INR 1,00,000 for each Bid
Performance Bank
Guarantee
INR 20 Lakhs/MW per Project in three BG (15%, 35% and 50%)
valid for 18 months from signing of PPA (PBG to be submitted
within 30 days of issue of LOI failing which EMD will be forfeited)
Bid submission process
 eProcurement (http://tender.eprocurement.gov.in)
Scanned copies of original documents to be uploaded.
 Hard Copies of EMD and processing fee to be sent before bid
deadline
Eligibility
 Technical Eligibility: Commercial and technically proven
technologies to be adopted
 Networth: INR 2 crore/MW.
Other: Consortium allowed but lead member should have more
than 51% controlling stake. Technical partner not mandatory at
RfS stage but equity share for such technical partner in the
consortium is limited to 10%
Tentative timelines
 Bid deadline: 26 Sept 2014
 Completion of bid process: 23 Nov 2014
PPA basis
APERC standard PPA with relevant modifications
Term of PPA
25 years from COD
Time period for commissioning
10 months from signing of PPA
Time period for financial closure and
conditions subsequent
150 days from signing of PPA
Networth infusion incase of SPV
30% of requirement before PPA execution and balance before
financial closure
Project location/site
Can be changed till financial closure
Key obligations of developer
 Obtaining all consents and clearances
 Designing, financing, construction, owning and operating the
power station
 Developing interconnection facilities till Interconnection point
 Operating and maintenance of power plant to conform to
RLDC/SLDC/TSTRANSCO/IEGC norms
CUF
Norm – 25%
No penalties for lower CUF
Energy beyond 25% CUF will be billed at 50% of applicable
tariff for that year
Energy Dispatch
All energy for DISCOMS’ exclusive benefit
Payment terms
Monthly bill payment. Rebate and Late payment interest
provided Payment security is letter of credit
THANK YOU
Authorized Representative: TSSPDCL