KREDL issued RFP for allocation of 500MW solar projects

Karnataka is generating around 27 % of total energy through renewable energy sources out of the total demand. The present installed capacity of Karnataka is 14269.77 MW out of which renewable energy is about 3985.13 MW.  The Government of Karnataka is endeavoring to install 2000 MW Solar Power that is to achieve a minimum of 3% Solar Power out of the total projected consumption by 2021.. GoK is proposed to:

• Achieve minimum of 1600 MW of grid connected utility scale solar power projects for sale of power to state ESCOM’s.
• Achieve minimum of 400 MW of grid connected roof top solar projects.

GoK intends to undertake development of 500 MW of solar thermal and/or solar PV power plants in the State of Karnataka. GoK has, through KREDL, decided to carry out the bidding process for selection of the Bidders to whom the Project(s) may be awarded. Bidders are allowed to bid for one or more Project(s) based on the Eligibility Criteria stipulated in this RFP. Till now 80 MW of new PPA’s have been signed in Karnataka after a delay of 6 months. The Bidding Documents include this RFP and the draft PPA.

RFP	500 MW
PPA Period	25 Years
Nodal Agency	KREDL
Bidding Process	Single Stage Process
Bid Security	Rs 10 Lakh per MW
Validity period of the Bank Guarantee	Not less than 365 days
Cost of RFP Document	Rs 10,000
Cost of Capacity for respective bids	Rs. 1,10,000 and a service tax @ 12.36% per MW

Approved Tariff for Solar Plants:

Type of Solar Plant	Approved Tariff in Rs/unit
Solar PV Power Plants	8.40
Solar Thermal Power Plants	10.92
Rooftop and Small Solar PV Plants	9.56
Rooftop and Small Solar PV Plants with 30% capital subsidy	7.20

Source: Karnataka Electricity Regulatory Commission Final Report

• A Bidder could propose any number of Projects. Minimum capacity of the Project proposed by the Bidder shall be at least 3 MW and the maximum capacity could be 500 MW.
• The Bidder may propose to develop different Project(s) in the same location, provided that each Project is separated by a distinct boundary.
• The PPA shall be signed for each Project with the concerned electricity supply company (ESCOMS).
• Generally, the Bidder who quotes the lowest Effective Tariff will be selected first and so on till the total aggregate capacity of 500 MW is reached.
• This RFP is not transferable.
• The Developer shall be responsible for power evacuation from the power plant to the nearest substation. The interconnection to the nearest substation shall be at the voltage level of 11KV for generation capacity of less than 5 MW and at the voltage level of 33/66/110/220 KV for generation capacity of 5 MW and above.
• The Financial Bid should be furnished in electronic mode only clearly indicating the Effective Tariff. The Bidder shall, as part of its Financial Bid, submit separate Effective Tariff for each of the Project.

Shareholding commitments:

• ·Selected Bidder is a Consortium then Members of the Consortium shall collectively hold at least 51% of subscribed and paid up equity share capital of the SPV and the lead Member shall have 26%  shareholding of the SPV
• Selected Bidder is a Single Business Entity then it shall hold at least 51% of subscribed and paid up equity share capital of the SPV.

• The Bidder shall have a minimum net worth equivalent of Rs. 2 crore or equivalent US$ per MW in proportion to the cumulative capacity proposed as on March 31, 2014.
• Sharing of CDM benefits: CDM shall be shared between Developer and concerned ESCOM in the following manner:

• 100% of the gross proceeds on account of CDM benefit to be retained by the Developer in the year after the date of commercial operation of the generating station.

• In the second year, the share of the concerned ESCOM shall be 10% which shall be progressively increased by 10% every year till it reaches 50%, where after the proceeds shall be shared in equal proportion, by the Developer and concerned ESCOM.

• The commercial operation date for the Project shall be achieved by the Developer within 18/30^* months from the date of signing of the Power Purchase Agreement, in case of failure:

Delay upto one month	20% of the total Performance Security
Delay of more than one month and upto two months	40% of the total Performance Security
Delay of more than two months and up to three months	40% of the Performance Security
Delay of more than 3 months	Developer shall pay to ESCOM the Liquidated Damages of Rs. 50,000/MW per day on weekly basis

Bidding Schedule:

S. No.	Event Description	Date
1	Last date for receiving queries	July 3, 2014, 1730 Hours
2	Pre-Bid Conference	July 3, 2014, 1430 Hours
3	Bid Due Date	August 20, 2014, 1630 Hours
4	Due Date for submission of Demand Drafttowards cost of RFP and Processing Fee	August 25, 2014, 1630 Hours
5	Due Date for submission of original BankGuarantees towards Bid Security	August 25, 2014, 1630 Hours
6	Opening of Bid (except Financial Bid)	September 01, 2014, 1130 Hours
7	Opening of Financial Bid	To be intimated later
8	Bid Validity Period	365 days from Bid Due Date