Karnataka Solar – RfP for 130 MW released ; No L1 process

Karnataka is the latest state to release an RfP for allocation of projects totaling 130 MW. Karnataka follows Tamil Nadu, Andhra Pradesh, Rajasthan, Bihar and Odhisha in releasing an RfP.
Unlike most of the recent tenders, Karnataka has not opted for L1 process for project allocation. Instead, it will be similar to the reverse bidding conducted under the JNNSM Phase 1. The benchmark tariff as notified by the Karnataka Electricity Regulatory Commission(KERC) are as follows.
Solar PV – Rs. 14.50/kWh
Solar Thermal – Rs. 11.35/kWh.
Bidders have to offer a discount on these prices.
Pre-bid meeting will take place on March 12, 2013 and the bid submission due date will be March 28,2013. The bids(except financial bids) will be opened on April 1, 2013.
Some of the salient features are as follows.
a. The objective is to meet the Renewable Purchase Obligations(RPO) for the state. (Click here for a presentation on RPOs)
b. The 130 MW projects could be Solar PV and/or Solar Thermal.
c. A bidder can bid for any number of projects, but the total allocation will be limited to 10 MW per bidding group.
d. Size of an individual project – 3 MW minimum and 10 MW maximum.
e. Connectivity – The Developer will be responsible for the power evacuation. Interconnection shall be at 33/66/110 KV. The selected bidder shall obtain power evacuation approval within 180 days of signing the PPA from Karnataka Power Transmission Company Limited/ESCOM.
f. Water availability – Responsibility of the Developer
g. Separate Projects can be in the same location, but each project should have distinct boundaries.
h. The land can be changed after RfP submission.
i. Bid security amount – Rs. 20,00,000(Twenty Lakhs) per MW.
j. Net worth criteria – Rs. 2 Crore/MW
k. Shareholding commitments
“In case the Selected Bidder is a Consortium, Members of the Consortium shall collectively hold at least 51% of subscribed and paid up equity share capital of the SPV at all times until third anniversary of the Commercial Operations Date of the Project. Lead Member shall have 26% shareholding of the SPV until third anniversary of the Commercial Operations Date of the Project. ”
l. Financial Closure – 180 days from the date of signing the Power Purchase Agreement(PPA).
m. Commissioning of the project – 12 months for PV and 24 months for CSP from the date of signing of PPA.
Highlights of the Power Purchase Agreement(PPA)
The off-taker will be local ESCOM(Electricity Supply Compay).
a. Max Capacity Utilisation Factor(CUF) permitted – 21% for solar PV and 25% for solar thermal
b. Min CUF – 12% for solar PV and 16% for solar thermal
c. Penalty for shortfall – rate equal to the compensation payable by the ESCOM towards non-meeting of RPOs
d. The Power Project shall be required to maintain compliance to the applicable Grid Code requirements and directions, if any, as specified by concerned SLDC/RLDC from time to time.
e. Third party verification – KREDL would nominate a third party to evaluate the site at any given point in time and the developer has to bear the charges for all activities undertaken during the third party verification
f. In the event of delay in payment of a monthly bill by ESCOM within 30 (thirty) days beyond its Due Date, a late payment surcharge shall be payable to the Developer at the rate of 1.25% per month on the outstanding amount calculated on a day to day basis (“Late Payment Surcharge”). The Late Payment Surcharge shall be claimed by the Developer through the Supplementary Bill.
g. Payment security – unconditional, revolving and irrevocable LC
The RfP can be downloaded here.
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3 thoughts on “Karnataka Solar – RfP for 130 MW released ; No L1 process”

  1. Thanks a lot Sir for the above information. Kindly inform us the time and the address of the Pre-bid meeting.
    Thanks $ Regards,
    Neela Khona

  2. thanks, for your information .
    please mention the clear cut address , pre bid meeting is held .

  3. Hello Lokesh,
    The pre-bid conference is on March 12, 2013 , 1430 Hrs.
    Venue of Pre-bid Conference:
    KEB Engineers’ Association Convention Hall
    Race Course Cross Road,
    Anand Rao Circle,
    Giridaran Srinivasan

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