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Overview of
Tariff based competitive bidding for
procurement of 2000 MW of solar power in
the state of Telangana State
• 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
2
Context1
Brief over view of Bid Process2
Overview of TS DISCOMs4
Illustration of Bid Process3
3
Context
4
TSSPDCL, the lead procurer and the authorized representative of the two
DISCOMS, intends to procure solar power for the following key reasons
1. Encouraging distributed generation
2. Ensuring an optimal fuel mix in the long run with good contribution from NCE
sources
3. Solar power would aid in serving high agricultural consumption since TS is ideal
for setting up of solar power with an average solar insolation of nearly 5.0 kWh/m2
Accordingly, tender process was initiated during April 2015 for the above
procurement of 2000 MW
Background
5
Key principles of procurement
TSDISCOMS have designed a phased, structured and methodical approach for undertaking the bid process
selecting the successful bidder
The bid process was designed after an extensive study and analysis of standard tender documents issued by
MNRE and tenders across other states
Design Principles of bid process
Competitive Prices
• Fair prices to consumers
• Adequate returns to developers
Fairness and transparency
• Deploy a fair and transparent
approach to select bidders
• Maximize participation
Supply security
• Ensure reliable power to the
Consumers
Invite Proposals
for selecting
Bidders (RfS)
Proposal
Submission by
Bidder
Evaluation of
Bids
Selection of
Bidder & award
of contract
6
Technology
 Solar PV technology. Technology agnostic within PV (crystalline silicon, thin film etc.)
 Only proven technologies (adopted at least in one project world wide) can be implemented
Project Location
 Bidder is free to set up Projects anywhere in the State subject to limitations on available capacity of S/S & Districts
 Location/Project site can be changed until financial closure
 Interconnection substation cannot change subsequent to issue of LOI
Project capacity
Minimum 2 MW at Delivery Voltage of 33 kV at 33/11kV Interconnection Substation
Maximum NA
Project Capacity Limits defined at each voltage level and at each Substation category under Annexure D
Segregation of Bids into Group 1 and Group 2
 Group 1 : Bids specifying injection at 33 kV level and shall include Bidders injecting at 33 kV side of 33/11 kV
Interconnection Substation or 33 kV side of 132/33 kV Interconnection Substation
 Group 2 : Bids specifying injection at EHT voltages of 132 kV and 220 kV and shall include those injecting 132 kV side of
132/33 kV Interconnection Substation or 220 kV side or 132 kV side of 220/132 kV Interconnection Substation or 220 kV side
of 400/220 kV Interconnection Substation
Project scope (1/3)
7
Scheduled Commercial Operation Date (SCOD
Twelve (12) months from date of signing of PPA i.e. Effective Date for Group 1 Projects injecting at 33 kV level
Fifteen (15) months from date of signing of PPA i.e. Effective Date for Group 2 Projects injecting at EHT system of 132 kV and
220 kV level
A one-time incentive for early commissioning of Projects before the Scheduled COD is applicable as specified in the PPA
Transmission Access
 The SPD shall be wholly responsible for arranging transmission access from the station switchyard of the Project up to the
Interconnection Point
 The Project should be designed for interconnection with the distribution/ transmission network of DISCOM or Telangana
TRANSCO at voltage level of 33 kV or 132 kV or 220 kV
 In case the Project connects to a 33/11 kV Interconnection Substation, only if Available Capacity is subject to bay extension
and bay extension is not feasible, then the Bidder shall procure land and undertake bay extension at its own cost, however, in
other cases no cost shall be payable to the DISCOM.
 In case the Project connects to EHT Interconnection Substations of 132/33 kV, 220/132 kV and 400/200 kV, the SPD shall
invariably pay land cost for bays whether existing or to be constructed, to TSTRANSCO
Project scope (2/3)
8
Contract Period
• 25 years from the COD of the Project
Tariff Payment
• The SPD shall be entitled to receive the Tariff payments computed in the following manner – Tariff for each Tariff Year for the
entire tenor of the PPA shall be the Quoted Tariff. No escalation shall be allowed on the Quoted Tariff at any time during the
tenor of the PPA
Interconnection Substation
• A single Project shall be connected to a single Interconnection Substation
• Bidder shall submit a List of Preferred Interconnection Substations (At least 1 and up to 10) 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 as provided in the RFS
• After issue of LOI, Interconnection Substation cannot be changed
Project scope (3/3)
9
Tariff for each Tariff Year for the entire tenor of the PPA shall be the Quoted Tariff
Bidders shall invariable quote tariff not exceeding the ceiling tariff. Any Bid not meeting this condition shall be summarily rejected
“Tariff Year” shall mean the each period of twelve (12) months commencing from the COD. The last Tariff Year shall end on the
date of expiry or termination of the PPA as applicable
Evaluation of Financial Bids and allocation of Interconnection Substations under First Round of Allocation and Second Round of
Allocation as specified in the RFS shall be carried out separately for Group 1 and Group 2 Bids.
Provisions of First Round of Allocation and Second Round of Allocation shall apply mutatis mutandis to Group 1 and Group 2
Bids
Group 1 Bids will be allocated first, followed by Group 2 Bids. Technical evaluation shall be same for Group 1 and Group 2 Bids
with no distinction whatsoever
Group Ceiling Tariff
Group 1 Bids
Bidders injecting at 33 kV level and shall include Bidders injecting
at 33 kV side of 33/11 kV Interconnection Substation or 33 kV side
of 132/33 kV Interconnection Substation
Ceiling Tariff is Rs 6.4500/kWh
Group 2 Bids
Bidders injecting at EHT voltages of 132 kV and 220 kV and shall
include Bidders injecting at 132 kV side of 132/33 kV
Interconnection Substation or 220 kV side or 132 kV side of
220/132 kV Interconnection Substation or 220 kV side of 400/220
kV Interconnection Substation
Ceiling Tariff is Rs 6.3200/kWh
Bid Parameter, Tariff, evaluation and payment
10
District wise & Voltage wise Capacity
S.
N
o.
Interfacing/grid
substation (Inter-
connection point)
Injection
Voltage
level
(AC)
Injection
capacity at
Substation
(MW)
1 33/11 kV 33 kV 2 to 8
2 132/33 kV 33 kV 9 to 15
3 132/33 kV 132 kV 16 to 50
4 220/132 kV 132 kV 16 to 50
5 220/132 kV 220 kV 51 to 100
6 400/220 kV 220 kV 51 to 150
District Capacity Limit
for District
Capacity Limit
for Group 1
Bids (MW)
Capacity Limit
for Group 2
Bids (MW)
Mahbubnagar 400 100 300
Medak 500 100 400
Nalgonda 600 150 450
Rangareddy
South
100 25 75
Warangal 300 100 200
Karimnagar 300 75 225
Khammam 200 50 150
Nizamabad 400 100 300
Adilabad 200 50 150
Total
Requisitioned
Capacity
2,000 500 1500
The Available Capacity at any Interconnection Substation shall be limited by the capacity at the Interconnection
Substation required to reach the Capacity Limit in the District.
If the Capacity Limit at any district is reached, then consequentially, the Available Capacity at all the Interconnection
Substations in that particular district will become zero.
11
District 400kV 220kV 132kV Total
Adilabad 182 162 343
Mahabubnagar 355 375 235 965
Medak 574 316 890
Nalgonda 471 544 1014
Nizamabad 143 268 407 818
Ranga reddy 450 731 167 1348
Warangal 143 281 424
karimanagar 95 509 604
Khammam 185 185
Total 948 2,839 2,806 6593
(All Values in MW)
District-wise Capacity availability in each voltage level
12
PPA basis TSERC approved PPA
Term of PPA 25 years from COD
Time period for commissioning 12 months from signing of PPA for Group 1 Bidders and 15 months for Group 2 Bidders
Time period for financial
closure and conditions
subsequent
180 days from signing of PPA
Net worth infusion
INR 0.30 Crores/MW on or before PPA execution, additional INR 0.75 Crores/MW on or before
Financial Closure and balance of INR 0.45 Crores/MW on or before COD of the Project
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 with
RLDC/SLDC/TSTRANSCO/IEGC norms
CUF
No penalties for lower CUF
Energy beyond 25% CUF will be billed at 50% of applicable tariff for that year. CUF
computation is on yearly basis
Energy Dispatch
All energy for DISCOMS’ exclusive benefit
Delivered Energy prior to COD shall be purchased at first year Tariff
Payment terms
Monthly bill payment. Rebate of 1% and Late payment interest (simple interest at prevailing
base Prime Lending Rate of State Bank of India) provided
Payment security is letter of credit
Salient Features of PPA
13
Revised provision
 Group 1 Bids : Bidders injecting at 33 kV level and shall include Bidders injecting at 33 kV side of 33/11 kV
Interconnection Substation or 33 kV side of 132/33 kV Interconnection Substation
 Group 2 Bids: Bidders injecting at EHT voltages of 132 kV and 220 kV and shall include Bidders injecting at 132
kV side of 132/33 kV Interconnection Substation or 220 kV side or 132 kV side of 220/132 kV Interconnection
Substation or 220 kV side of 400/220 kV Interconnection Substation
Group 1 Bidders who are Individuals or partnerships or Limited Liability Companies (LLC) need not form Project
Company for implementing the Project.
Hybrid consortiums are allowed. But any consortium must necessarily form Project Company for implementing the
Project
Dilution of Controlling Shareholding: Incase of Bidding Consortium which has formed a Project Company, Lead
Member may dilute its shareholding, however Controlling Shareholding of 51% shall be maintained till one (1) year of
COD of the Project
Minimum Net Worth Criteria INR 1.5 Crores/MW
Key amendments in RFS
In order to increase competition, RFS has been amended keeping in view fair provisions
to developers as well as supply security to DISCOMS
14
Earlier provision Revised provision
Necessary equity infusion towards
meeting minimum net worth criteria i.e.
INR 0.6 Crores/MW before signing of
PPA and INR 1.4 Crores/MW on or
before financial closure
Necessary equity infusion. i.e. INR 0.30 Crores/MW on or before PPA
execution, additional INR 0.75 Crores/MW on or before Financial Closure
and balance of INR 0.45 Crores/MW on or before COD of the Project
Commercial Operation Date within Twelve
(12) months from the date of signing of
the Agreement
Commercial Operation Date within
Twelve (12) months for Group 1
Fifteen (15) months for Group 2
Interconnection Infrastructure
1. After the expiry of the PPA, facilities and infrastructure including all equipment
installation at the bay extension developed by SPD for interconnection at the
interconnection point of the interconnection substation needs to be transferred to
DISCOM/TSTRANSCO. Interconnection point of the interconnection substation have to
be handed over to the Licensee concerned at a depreciated value as approved by the
Commission in case the agreement has been terminated or expired, however the lines
from the project to the interconnection point can be retained by SPD.
2. In case the project connects to a 33 / 11 kV interconnection substation where available
capacity is subject to bay extension and bay extension is not feasible, then the bidder
shall procure land and undertake bay extension at its own cost.
3. Further in case the project connects to EHT interconnection substations of 132/33,
220/132 KV and 400/220 KV, the SPD shall invariably pay land cost for bays whether
existing or to be constructed, to TSTRANSCO.
Amendments in PPA (1/2)
15
Earlier provision Revised provision
No Mention of Cure Period for
Lenders
DISCOM shall give a further notice to the Lenders, requiring the curing of default by SPD
within a period of 90 (ninety) days (Lender’s Cure Period) from the date of issue of
such notice by exercising the rights of the Lenders provided herein including but not
limited to rights of assignment/substitution/subrogation/novation.
Upon expiry of Lender’s Cure Period, unless otherwise the Solar Power Developer Event
of Default has been cured, the DISCOMS may terminate this Agreement
No specific mention of relaxation
of controlling shareholding
requirements in case of SPD
default and Lenders exercising
their substitution rights
The percentage of Controlling Shareholding of the Bidding Company may be
relaxed only upon the occurrence of event of default of the SPD under the
Financing Agreement, and the Lenders shall have the rights to alter the original
shareholding structure and Controlling Shareholding for the sole purpose of
recovering the amounts due and payable to the Lender subject to the approval of the
DISCOM which shall not be unreasonably withheld. However, both the Lenders
No provision of RTGS
All payments shall be made by way of either cheques or National Electronic Fund
Transfer (NEFT) or Real Time Gross Settlement (RTGS) payments into the Solar Power
Developer’s Designated Account.
Amendments in PPA (2/2)
To improve bankability of projects, DISCOMs have modified the PPA keeping in view
fair provisions to Lenders
16
Brief Overview of
Bid Process
17
Tender process was initiated by TSSPDCL on 1st April 2014
Bid Process for selecting the Solar Power Developer (1/4)
Invite Proposals
for selecting
Bidders (RfS)
Proposal
Submission by
Bidder
Evaluation of
Bids
Selection of
Bidder & award
of contract
RfS was issued by TSSPDCL on 1st April 2015
Pre-bid conference was conducted on 10th April 2015. The conference saw
participation from over 300 prospective bidders
After analyzing the various requests made by the Bidders and keeping in
view the best interest of the DISCOMS and its consumers, TSSPDCL has
issued amended RFS on 9 June 2015
Last date for submission of Bids i.e. Bid Deadline is 30 June 2015
18
Event Revised Schedule
Date of issue of RFS 1April 2015
Pre-Bid Meeting 10April 2015
Revision of RFS Documents 09 June 2015
Bid Deadline i.e. Last Date and Time for submission of Bids 30 June 2015 17:00 Hours
Opening of PQ Bid 02 July 2015
Opening of Technical Bid 06 July 2015
Opening of Financial Bid of Qualified Bidders 20 July 2015
 Scanned copies of the RFS Documents shall be uploaded on the eProcurement Website
 Original Documents shall be sought only from the successful bidders
 Single-stage bidding process where Technical and Financial Bids are submitted simultaneously
Invite Proposals
for selecting
Bidders (RfS)
Proposal
Submission by
Bidder
Evaluation of
Bids
Selection of
Bidder & award
of contract
Bid Process for selecting the Solar Power Developer (2/4)
19
Non-Financial (Technical)
Evaluation
Financial Evaluation
Invite Proposals
for selecting
Bidders (RfS)
Proposal
Submission by
Bidder
Evaluation of
Bids
Selection of
Bidder & award
of contract
Bid Process for selecting the Solar Power Developer (3/4)
20
Eligibility Criteria
General Technical Financial
WHO ALL CAN PARTICIPATE?
 Any company formed under the companies Act 1956 or Companies Act 2013
 Foreign companies
 Limited Liability Companies (LLC)
 Individuals (both foreign and Indian)
 Partnerships (both foreign and Indian)
 Limited Liability Partnerships (both Indian and foreign)
 Consortiums with companies/firms/individuals as members can also participate but must necessarily nominate a
lead member with controlling shareholding (i.e. minimum 51% paid up capital and voting rights)
 Hybrid Consortiums with one or more members as Individuals/Partnerships/Companies
 Group 1 Bidders need not form Project Company for implementing the Project.
1. Bid processing fee of Rs
10,000/MW to maximum of
Rs 1,00,000 per Financial
Bid
2. EMD of Rs 10 Lakhs per
MW of offered capacity
The Bidder shall deploy only
commercially established and
operational technologies to
minimize the technology risk and
to achieve timely commissioning
of the Projects.
Net Worth of Rs 1.5 crores/MW
of total Bid Capacity
Evaluation – Parameters (1/4)
Technical evaluation would be overseen by an appropriate evaluation committee
21
Check for Responsiveness of Bid
Evaluation of fulfillment of
qualification requirements
Short-list Qualified Bidders for
financial evaluation
1 2 3
Non- Responsiveness of Bids
 Non-submission of bid
processing fee as per RfS
 EMD not as per RfS
 Submission of financial bid in
Technical Bid
All Non-Responsive Bids are
eliminated from the Bid Process. They
are not evaluated technically or
financially
Fulfillment of Technical
Requirements
 Meet Net Worth requirements
 Has submitted all other
relevant documents
 RfS authorizes TSSPDCL to seek
clarification to remove any
inconsistencies in the Bid
 Accordingly, TSSPDCL may seek
clarifications from Bidders for
removing any inconsistencies
 Bidders are solely responsible for
removal of inconsistencies in their
Bid to the satisfaction of TSSPDCL
Financial Bids of ONLY those
bidders who fulfill qualification
requirements are opened
(“Qualified Bidders)
Qualification of Bidders
Evaluation – Parameters (2/4)
Financial Bids are submitted along with Technical Bids, but opened only if the Bidder is
Qualified Bidder and meets qualification requirements
22
Financial Evaluation
Financial Bid shall comprise the following
 Offered Capacity
 Injection Voltage
 Quoted Tariff under Group 1 or Group 2
 List of Preferred Interconnection
Substations (Min 1 and Max 10)where
the Bidder shall connect the entire
Offered Capacity – Each substation in
the list shall be able to accommodate
Offered Capacity
Invite Proposals
for selecting
Bidders (RfS)
Proposal
Submission by
Bidder
Evaluation of
Bids
Selection of
Bidder & award
of contract
Financial Bids are submitted along with Technical Bids, but opened only if the Bidder is
Qualified Bidder and meets qualification requirements
Evaluation – Parameters (3/4)
23
1. Ranking of Bids is in the following order of metrics
i. Lowest Quoted Tariff
ii. Higher Offered Capacity is given preference
iii. Higher Net Worth is given preference
2. Multiple Financial Bids can be submitted by the Bidder. But allocation will happen in the stacking order of bid
parameter only. Hence a bidder may have more than one position in the ranking order depending on the number
of financial bids submitted
All Qualified Bidders are stacked in the ranking order and project allocation shall be as per the rank
Evaluation – Parameters (4/4)
Invite Proposals
for selecting
Bidders (RfS)
Proposal
Submission by
Bidder
Evaluation of
Bids
Selection of
Bidder & award
of contract
24
Allocation process – First Round (1/2)
Financial Bids shall be ranked in ascending order of Quoted Tariff and the qualified bidder with lowest Tariff shall be
declared as successful bidder for the offered capacity offered by such Qualified Bidder in the Financial Bid
During the First Round of Allocation, the following conditions shall apply:
• If the Available Capacity at the most preferred Interconnection Substation is less than the Offered Capacity, then the
Qualified Bidder shall be allotted the next preferred Interconnection Substation from the List where Available Capacity is
greater than or equal to the Offered Capacity.
• If the Capacity Limit at any district is reached, then the Qualified Bidder shall be allotted the next preferred
Interconnection Substation from the List, which corresponds to a district where the Capacity Limit is not reached
• If the Capacity Limit at any district is reached, then the Available Capacity at all the Interconnection Substations in that
particular district will become zero.
• Further the Available Capacity at any Interconnection Substation shall be limited by the capacity at the Interconnection
Substation required to reach the Capacity Limit in the District.
During the First Round of Allocation, if there is no single Interconnection Substation in the List specified by the Qualified
Bidder where Available Capacity is greater than or equal to Offered Capacity, then the Qualified Bidder shall be invited to
select only one of the following options:
• Develop Project(s) at a reduced capacity equal to the Available Capacity of such Interconnection Substations in the List ,
which has the highest Available Capacity
• Split Offered Capacity into fractions (whole number only) across the Interconnection Substations in the List specified by
the Bidder
• Develop partial capacity at any one or more of the Interconnection Substations in the List and move to the Second
Round of Allocation for balance capacity
• Participate in the Second Round of Allocation for the entire Offered Capacity
• Withdraw from the Bid process altogether in which case EMD will be returned.
First round of allocation
25
Allocation process (2/2)
All Qualified Bidders moved to second round will be ranked in ascending order of bid parameter and will be invited to select
Interconnection S/s from all the substations where there is Available Capacity after the first round
Qualified Bidder(s) cannot select any Interconnection Substation already allotted to such Bidder during the First Round of
Allocation
The Qualified Bidder may opt for withdrawing from the Bid process in this round and in such case, EMD shall be returned within
ten (10) days of issue of Letter of Intent (LOI) to all Successful Bidders
Allocation will be carried out in respect of all the Qualified Bidders, remaining after the First Round of Allocation, in the ranking
order of the Bid Parameter and the Authorized Representative reserves the right to change the Requisitioned Capacity
Bidder can fragment offered capacity across substations in first round/second round, if no single Substation can accommodate
the entire Offered Capacity
• Available capacity at one shall be exhausted before selecting another s/s
• A single Project shall be connected to a single Interconnection Substation only. In case of fragmentation of Offered
Capacity, the Successful Bidder shall develop multiple Projects in line with number of Interconnection Substations
selected
• If the Capacity Limit at any district is reached, then the Available Capacity at all the Interconnection Substations in that
particular district will become zero
• Further the Available Capacity at any Interconnection Substation shall be limited by the capacity at the Interconnection
Substation required to reach the Capacity Limit in the District.
• Further, however, in this Second Round of Allocation, the Group 2 Qualified Bidder can opt for 33 kV side of 33/11 kV
Interconnection Substation or 33 kV side of 132/33 kV Interconnection Substation in case of fragmentation of Offered
Capacity, provided however, the Quoted Tariff of the Group 2 Qualified Bidder shall be revised to the lower of the Quoted
Tariff specified by such Group 2 Qualified Bidder or the Lowest Quoted Tariff received for Group 1 Bids, whichever is less
Second round of allocation
26
Illustration of Bid
Process
27
Bidder #AB #CD #XY #PQ #AB #MN #EF #EF #GH
Bid Parameter 3.400 3.500 3.800 3.900 4.100 4.200 4.200 4.300 4.300
Offered Capacity 100 MW 80 MW 60 MW 90 MW 45 MW 40 MW 20 MW 30 MW 30 MW
Net worth 300 Cr 180 Cr 150 Cr 200 Cr 100 Cr 100 Cr 50 Cr 90 Crs 61 Crs
Rank 1 2 3 4 5 6 7 8 9
Ranking of the Bidders
Evaluation of Bids and allocation of Interconnection Substation
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
If both bid parameter and offered capacity are the same, bidder demonstrating higher net
worth is given preference
28
Substations: (Available capacity/ max capacity)
Shadnagar (150/150) Veltoor (100/100) KM Pally (60/60) Durshed (50/50)
Bidders (Capacity in MW) and their preferred s/s
B1 (80)
1. Shadnagar
2. Veltoor
B2 (50)
1. Veltoor
2. KM Pally
3. Durshed
B3 (80)
1. Shadnagar
2. Veltoor
B1 (80) B2 (50) B3 (80)
Shadnagar can accommodate B1
B4 (30)
1. Veltoor
B4 (100)
29
Substations: (Available capacity/ max capacity)
Shadnagar (70/150) Veltoor (100/100) KM Pally (60/60) Durshed (50/50)
Bidders (Capacity) and their preferred s/s
B1 (80)
1. Shadnagar
2. Veltoor
B2 (50)
1. Veltoor
2. KM Pally
3. Durshed
B3 (80)
1. Shadnagar
2. Veltoor
B1 (80)
B2 (50) B3 (80)
Veltoor can accommodate B2
B4 (30)
1. Veltoor
B4 (100)
30
Substations: (Available capacity/ max capacity)
Shadnagar (70/150) Veltoor (50/100) KM Pally (60/60) Durshed (50/50)
Bidders (Capacity) and their preferred s/s
B1 (80)
1. Shadnagar
2. Veltoor
B2 (50)
1. Veltoor
2. KM Pally
3. Durshed
B3 (80)
1. Shadnagar
2. Veltoor
B1 (80) B2 (50)
B3 (80)
Shadnagar can NOT accommodate B3
Veltoor can NOT accommodate B3
B3 has five options:
I. Develop Projects at a reduced capacity
II. Split Offered Capacity into fractions
III. Develop partial capacity at one or more
Interconnection S/s from the list and move to
second round for balance capacity
IV. Move to second round for entire offered capacity
V. Withdraw from the bid process altogether and
EMD will be returned
B4 (30)
1. Veltoor
B4 (100)
31
Substations: (Available capacity/ max capacity)
Shadnagar (70/150) Veltoor (50/100) KM Pally (60/60) Durshed (50/50)
Bidders (Capacity) and their preferred s/s
B1 (80)
1. Shadnagar
2. Veltoor
B2 (50)
1. Veltoor
2. KM Pally
3. Durshed
B3 (80)
1. Shadnagar
2. Veltoor
B1 (80) B2 (50) B3 (70)
Shadnagar can NOT accommodate B3
Veltoor can NOT accommodate B3
B3 has five options:
I. Develop Projects at a reduced capacity
II. Split Offered Capacity into fractions
III. Develop partial capacity at one or more
Interconnection S/s from the list and move to
second round for balance capacity
IV. Move to second round for entire offered capacity
V. Withdraw from the bid process altogether and
EMD will be returned
B1 (80) B2 (50)
B4 (30)
1. Veltoor
B4 (100)
32
Substations: (Available capacity/ max capacity)
Shadnagar (0/150) Veltoor (50/100) KM Pally (60/60) Durshed (50/50)
Bidders (Capacity) and their preferred s/s
B1 (80)
1. Shadnagar
2. Veltoor
B2 (50)
1. Veltoor
2. KM Pally
3. Durshed
B3 (80)
1. Shadnagar
2. Veltoor
B1 (80) B2 (50)
B3 (70)
B1 (80) B2 (50)
B4 (30)
1. Veltoor
B4 (100)
B3 selected 70 MW at Shadnagar in First Round and did not participate in the Second Round
33
Substations: (Available capacity/ max capacity)
Shadnagar (0/150) Veltoor (50/100) KM Pally (60/60) Durshed (50/50)
Bidders (Capacity) and their preferred s/s
B1 (80)
1. Shadnagar
2. Veltoor
B2 (50)
1. Veltoor
2. KM Pally
3. Durshed
B3 (80)
1. Shadnagar
2. Veltoor
B4 (30)
1. Veltoor
B1 (80) B2 (50)
B3 (70)
B4 (100)
B1 (80) B2 (50)
Veltoor can NOT accommodate B4
B4 has five options:
I. Develop Projects at a reduced capacity
II. Split Offered Capacity into fractions
III. Develop partial capacity at one or more
Interconnection S/s from the list and move to
second round for balance capacity
IV. Move to second round for entire offered capacity
V. Withdraw from the bid process altogether and
EMD will be returned
34
Substations: (Available capacity/ max capacity)
Shadnagar (0/150) Veltoor (50/100) KM Pally (60/60) Durshed (50/50)
Bidders (Capacity) and their preferred s/s
B1 (80)
1. Shadnagar
2. Veltoor
B2 (50)
1. Veltoor
2. KM Pally
3. Durshed
B3 (80)
1. Shadnagar
2. Veltoor
B4 (100)
1. Veltoor
B1 (80) B2 (50)
B3 (70)
B4 (50)
B1 (80) B2 (50)
Veltoor can NOT accommodate B4
B4 has five options:
I. Develop Projects at a reduced capacity
II. Split Offered Capacity into fractions
III. Develop partial capacity at one or more
Interconnection S/s from the list and move to
second round for balance capacity
IV. Move to second round for entire offered capacity
V. Withdraw from the bid process altogether and
EMD will be returned
B4 opted to participate in 2nd
round
for balance 50 MW
35
Illustration – District capacity
Mahbubnagar (100/ 100)
Kothur (60/60)
Makthal (50/50)
Nagarkurnool (40/40)
Kodad (25/25)
(Available capacity/ Max capacity) in MW
B1 (40)
1. Kothur
2. Makthal
Nalgonda(150/ 150)
Suryapet (60/60)
B2 (40)
1. Makthal
2. Nagarkurnool
B3 (20)
1. Kothur
2. Makthal
B4 (20)
1. Nagarkurnool
2. Kodad
Kothur s/s
accommodates B1
B1 (40)
B2 (40)
B3 (20)
B4 (20)
36
Illustration – District capacity
Mahbubnagar (60/ 100)
Kothur (20/60)
Makthal (50/50)
Nagarkurnool (40/40)
Kodad (25/25)
(Available capacity/ Max capacity) in MW
B1 (40)
1. Kothur
2. Makthal
Nalgonda(150/ 150)
Suryapet (60/60)
B2 (40)
1. Makthal
2. Nagarkurnool
B3 (20)
1. Kothur
2. Makthal
B4 (20)
1. Nagarkurnool
2. Kodad
B1 (40)
B2 (40)
B3 (20)
B4 (20)
37
Illustration – District capacity
Mahbubnagar (60/ 100)
Kothur (20/60)
Makthal (50/50)
Nagarkurnool (40/40)
Kodad (25/25)
(Available capacity/ Max capacity) in MW
B1 (40)
1. Kothur
2. Makthal
Nalgonda(150/ 150)
Suryapet (60/60)
B2 (40)
1. Makthal
2. Nagarkurnool
B3 (20)
1. Kothur
2. Makthal
B4 (20)
1. Nagarkurnool
2. Kodad
Makthal s/s
accommodates B2
B1 (40)
B2 (40)
B3 (20)
B4 (20)
38
Illustration – District capacity
Mahbubnagar (20/ 100)
Kothur (20/60)
Makthal (10/50)
Nagarkurnool (40/40)
Kodad (25/25)
(Available capacity/ Max capacity) in MW
B1 (40)
1. Kothur
2. Makthal
Nalgonda(150/ 150)
Suryapet (60/60)
B2 (40)
1. Makthal
2. Nagarkurnool
B3 (20)
1. Kothur
2. Makthal
B4 (20)
1. Nagarkurnool
2. Kodad
B1 (40)
B2 (40)
B3 (20)
B4 (20)
39
Illustration – District capacity
Mahbubnagar (20/ 100)
Kothur (20/60)
Makthal (10/50)
Nagarkurnool (40/40)
Kodad (25/25)
(Available capacity/ Max capacity) in MW
B1 (40)
1. Kothur
2. Makthal
Nalgonda(150/ 150)
Suryapet (60/60)
B2 (40)
1. Makthal
2. Nagarkurnool
B3 (20)
1. Kothur
2. Makthal
B4 (20)
1. Nagarkurnool
2. Kodad
Kothur s/s
accommodates B3
B1 (40)
B2 (40)
B3 (20)
B4 (20)
40
Illustration – District capacity
Mahbubnagar (0/ 100)
Kothur (0/60)
Makthal (10/50)
Nagarkurnool (40/40)
Kodad (25/25)
(Available capacity/ Max capacity) in MW
B1 (40)
1. Kothur
2. Makthal
Nalgonda(150/ 150)
Suryapet (60/60)
B2 (40)
1. Makthal
2. Nagarkurnool
B3 (20)
1. Kothur
2. Makthal
B4 (20)
1. Nagarkurnool
2. Kodad
B1 (40)
B2 (40)
B3 (20)
B4 (20)
41
Illustration – District capacity
Mahbubnagar (0/ 100)
Kothur (0/60)
Makthal (10/50)
Nagarkurnool (40/40)
Kodad (25/25)
(Available capacity/ Max capacity) in MW
B1 (40)
1. Kothur
2. Makthal
Nalgonda(150/ 150)
Suryapet (60/60)
B2 (40)
1. Makthal
2. Nagarkurnool
B3 (20)
1. Kothur
2. Makthal
B4 (20)
1. Nagarkurnool
2. Kodad
B1 (40)
B2 (40)
B3 (20)
B4 (20)
Even though
Nagarkurnool s/s
has capacity to
accommodate B4
no capacity will be
allotted at the
substation as
District Capacity
Limit is reached
42
Illustration – District capacity
Mahbubnagar (0/ 100)
Kothur (0/60)
Makthal (0/50)
Nagarkurnool (0/40)
Kodad (25/25)
(Available capacity/ Max capacity) in MW
B1 (40)
1. Kothur
2. Makthal
Nalgonda(150/ 150)
Suryapet (60/60)
B2 (40)
1. Makthal
2. Nagarkurnool
B3 (20)
1. Kothur
2. Makthal
B4 (20)
1. Nagarkurnool
2. Kodad
B1 (40)
B2 (40)
B3 (20)
B4 (20)
Capcity of all s/s
under
Mahbubnagar shall
be reduced to 0.
Kodad under
Nalgonda district
accommodates B4
43

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Illustration ppt for 2000 mw Tariff based competitive bidding of solar power in Telangana

  • 1. Overview of Tariff based competitive bidding for procurement of 2000 MW of solar power in the state of Telangana State
  • 2. • 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 2
  • 3. Context1 Brief over view of Bid Process2 Overview of TS DISCOMs4 Illustration of Bid Process3 3
  • 5. TSSPDCL, the lead procurer and the authorized representative of the two DISCOMS, intends to procure solar power for the following key reasons 1. Encouraging distributed generation 2. Ensuring an optimal fuel mix in the long run with good contribution from NCE sources 3. Solar power would aid in serving high agricultural consumption since TS is ideal for setting up of solar power with an average solar insolation of nearly 5.0 kWh/m2 Accordingly, tender process was initiated during April 2015 for the above procurement of 2000 MW Background 5
  • 6. Key principles of procurement TSDISCOMS have designed a phased, structured and methodical approach for undertaking the bid process selecting the successful bidder The bid process was designed after an extensive study and analysis of standard tender documents issued by MNRE and tenders across other states Design Principles of bid process Competitive Prices • Fair prices to consumers • Adequate returns to developers Fairness and transparency • Deploy a fair and transparent approach to select bidders • Maximize participation Supply security • Ensure reliable power to the Consumers Invite Proposals for selecting Bidders (RfS) Proposal Submission by Bidder Evaluation of Bids Selection of Bidder & award of contract 6
  • 7. Technology  Solar PV technology. Technology agnostic within PV (crystalline silicon, thin film etc.)  Only proven technologies (adopted at least in one project world wide) can be implemented Project Location  Bidder is free to set up Projects anywhere in the State subject to limitations on available capacity of S/S & Districts  Location/Project site can be changed until financial closure  Interconnection substation cannot change subsequent to issue of LOI Project capacity Minimum 2 MW at Delivery Voltage of 33 kV at 33/11kV Interconnection Substation Maximum NA Project Capacity Limits defined at each voltage level and at each Substation category under Annexure D Segregation of Bids into Group 1 and Group 2  Group 1 : Bids specifying injection at 33 kV level and shall include Bidders injecting at 33 kV side of 33/11 kV Interconnection Substation or 33 kV side of 132/33 kV Interconnection Substation  Group 2 : Bids specifying injection at EHT voltages of 132 kV and 220 kV and shall include those injecting 132 kV side of 132/33 kV Interconnection Substation or 220 kV side or 132 kV side of 220/132 kV Interconnection Substation or 220 kV side of 400/220 kV Interconnection Substation Project scope (1/3) 7
  • 8. Scheduled Commercial Operation Date (SCOD Twelve (12) months from date of signing of PPA i.e. Effective Date for Group 1 Projects injecting at 33 kV level Fifteen (15) months from date of signing of PPA i.e. Effective Date for Group 2 Projects injecting at EHT system of 132 kV and 220 kV level A one-time incentive for early commissioning of Projects before the Scheduled COD is applicable as specified in the PPA Transmission Access  The SPD shall be wholly responsible for arranging transmission access from the station switchyard of the Project up to the Interconnection Point  The Project should be designed for interconnection with the distribution/ transmission network of DISCOM or Telangana TRANSCO at voltage level of 33 kV or 132 kV or 220 kV  In case the Project connects to a 33/11 kV Interconnection Substation, only if Available Capacity is subject to bay extension and bay extension is not feasible, then the Bidder shall procure land and undertake bay extension at its own cost, however, in other cases no cost shall be payable to the DISCOM.  In case the Project connects to EHT Interconnection Substations of 132/33 kV, 220/132 kV and 400/200 kV, the SPD shall invariably pay land cost for bays whether existing or to be constructed, to TSTRANSCO Project scope (2/3) 8
  • 9. Contract Period • 25 years from the COD of the Project Tariff Payment • The SPD shall be entitled to receive the Tariff payments computed in the following manner – Tariff for each Tariff Year for the entire tenor of the PPA shall be the Quoted Tariff. No escalation shall be allowed on the Quoted Tariff at any time during the tenor of the PPA Interconnection Substation • A single Project shall be connected to a single Interconnection Substation • Bidder shall submit a List of Preferred Interconnection Substations (At least 1 and up to 10) 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 as provided in the RFS • After issue of LOI, Interconnection Substation cannot be changed Project scope (3/3) 9
  • 10. Tariff for each Tariff Year for the entire tenor of the PPA shall be the Quoted Tariff Bidders shall invariable quote tariff not exceeding the ceiling tariff. Any Bid not meeting this condition shall be summarily rejected “Tariff Year” shall mean the each period of twelve (12) months commencing from the COD. The last Tariff Year shall end on the date of expiry or termination of the PPA as applicable Evaluation of Financial Bids and allocation of Interconnection Substations under First Round of Allocation and Second Round of Allocation as specified in the RFS shall be carried out separately for Group 1 and Group 2 Bids. Provisions of First Round of Allocation and Second Round of Allocation shall apply mutatis mutandis to Group 1 and Group 2 Bids Group 1 Bids will be allocated first, followed by Group 2 Bids. Technical evaluation shall be same for Group 1 and Group 2 Bids with no distinction whatsoever Group Ceiling Tariff Group 1 Bids Bidders injecting at 33 kV level and shall include Bidders injecting at 33 kV side of 33/11 kV Interconnection Substation or 33 kV side of 132/33 kV Interconnection Substation Ceiling Tariff is Rs 6.4500/kWh Group 2 Bids Bidders injecting at EHT voltages of 132 kV and 220 kV and shall include Bidders injecting at 132 kV side of 132/33 kV Interconnection Substation or 220 kV side or 132 kV side of 220/132 kV Interconnection Substation or 220 kV side of 400/220 kV Interconnection Substation Ceiling Tariff is Rs 6.3200/kWh Bid Parameter, Tariff, evaluation and payment 10
  • 11. District wise & Voltage wise Capacity S. N o. Interfacing/grid substation (Inter- connection point) Injection Voltage level (AC) Injection capacity at Substation (MW) 1 33/11 kV 33 kV 2 to 8 2 132/33 kV 33 kV 9 to 15 3 132/33 kV 132 kV 16 to 50 4 220/132 kV 132 kV 16 to 50 5 220/132 kV 220 kV 51 to 100 6 400/220 kV 220 kV 51 to 150 District Capacity Limit for District Capacity Limit for Group 1 Bids (MW) Capacity Limit for Group 2 Bids (MW) Mahbubnagar 400 100 300 Medak 500 100 400 Nalgonda 600 150 450 Rangareddy South 100 25 75 Warangal 300 100 200 Karimnagar 300 75 225 Khammam 200 50 150 Nizamabad 400 100 300 Adilabad 200 50 150 Total Requisitioned Capacity 2,000 500 1500 The Available Capacity at any Interconnection Substation shall be limited by the capacity at the Interconnection Substation required to reach the Capacity Limit in the District. If the Capacity Limit at any district is reached, then consequentially, the Available Capacity at all the Interconnection Substations in that particular district will become zero. 11
  • 12. District 400kV 220kV 132kV Total Adilabad 182 162 343 Mahabubnagar 355 375 235 965 Medak 574 316 890 Nalgonda 471 544 1014 Nizamabad 143 268 407 818 Ranga reddy 450 731 167 1348 Warangal 143 281 424 karimanagar 95 509 604 Khammam 185 185 Total 948 2,839 2,806 6593 (All Values in MW) District-wise Capacity availability in each voltage level 12
  • 13. PPA basis TSERC approved PPA Term of PPA 25 years from COD Time period for commissioning 12 months from signing of PPA for Group 1 Bidders and 15 months for Group 2 Bidders Time period for financial closure and conditions subsequent 180 days from signing of PPA Net worth infusion INR 0.30 Crores/MW on or before PPA execution, additional INR 0.75 Crores/MW on or before Financial Closure and balance of INR 0.45 Crores/MW on or before COD of the Project 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 with RLDC/SLDC/TSTRANSCO/IEGC norms CUF No penalties for lower CUF Energy beyond 25% CUF will be billed at 50% of applicable tariff for that year. CUF computation is on yearly basis Energy Dispatch All energy for DISCOMS’ exclusive benefit Delivered Energy prior to COD shall be purchased at first year Tariff Payment terms Monthly bill payment. Rebate of 1% and Late payment interest (simple interest at prevailing base Prime Lending Rate of State Bank of India) provided Payment security is letter of credit Salient Features of PPA 13
  • 14. Revised provision  Group 1 Bids : Bidders injecting at 33 kV level and shall include Bidders injecting at 33 kV side of 33/11 kV Interconnection Substation or 33 kV side of 132/33 kV Interconnection Substation  Group 2 Bids: Bidders injecting at EHT voltages of 132 kV and 220 kV and shall include Bidders injecting at 132 kV side of 132/33 kV Interconnection Substation or 220 kV side or 132 kV side of 220/132 kV Interconnection Substation or 220 kV side of 400/220 kV Interconnection Substation Group 1 Bidders who are Individuals or partnerships or Limited Liability Companies (LLC) need not form Project Company for implementing the Project. Hybrid consortiums are allowed. But any consortium must necessarily form Project Company for implementing the Project Dilution of Controlling Shareholding: Incase of Bidding Consortium which has formed a Project Company, Lead Member may dilute its shareholding, however Controlling Shareholding of 51% shall be maintained till one (1) year of COD of the Project Minimum Net Worth Criteria INR 1.5 Crores/MW Key amendments in RFS In order to increase competition, RFS has been amended keeping in view fair provisions to developers as well as supply security to DISCOMS 14
  • 15. Earlier provision Revised provision Necessary equity infusion towards meeting minimum net worth criteria i.e. INR 0.6 Crores/MW before signing of PPA and INR 1.4 Crores/MW on or before financial closure Necessary equity infusion. i.e. INR 0.30 Crores/MW on or before PPA execution, additional INR 0.75 Crores/MW on or before Financial Closure and balance of INR 0.45 Crores/MW on or before COD of the Project Commercial Operation Date within Twelve (12) months from the date of signing of the Agreement Commercial Operation Date within Twelve (12) months for Group 1 Fifteen (15) months for Group 2 Interconnection Infrastructure 1. After the expiry of the PPA, facilities and infrastructure including all equipment installation at the bay extension developed by SPD for interconnection at the interconnection point of the interconnection substation needs to be transferred to DISCOM/TSTRANSCO. Interconnection point of the interconnection substation have to be handed over to the Licensee concerned at a depreciated value as approved by the Commission in case the agreement has been terminated or expired, however the lines from the project to the interconnection point can be retained by SPD. 2. In case the project connects to a 33 / 11 kV interconnection substation where available capacity is subject to bay extension and bay extension is not feasible, then the bidder shall procure land and undertake bay extension at its own cost. 3. Further in case the project connects to EHT interconnection substations of 132/33, 220/132 KV and 400/220 KV, the SPD shall invariably pay land cost for bays whether existing or to be constructed, to TSTRANSCO. Amendments in PPA (1/2) 15
  • 16. Earlier provision Revised provision No Mention of Cure Period for Lenders DISCOM shall give a further notice to the Lenders, requiring the curing of default by SPD within a period of 90 (ninety) days (Lender’s Cure Period) from the date of issue of such notice by exercising the rights of the Lenders provided herein including but not limited to rights of assignment/substitution/subrogation/novation. Upon expiry of Lender’s Cure Period, unless otherwise the Solar Power Developer Event of Default has been cured, the DISCOMS may terminate this Agreement No specific mention of relaxation of controlling shareholding requirements in case of SPD default and Lenders exercising their substitution rights The percentage of Controlling Shareholding of the Bidding Company may be relaxed only upon the occurrence of event of default of the SPD under the Financing Agreement, and the Lenders shall have the rights to alter the original shareholding structure and Controlling Shareholding for the sole purpose of recovering the amounts due and payable to the Lender subject to the approval of the DISCOM which shall not be unreasonably withheld. However, both the Lenders No provision of RTGS All payments shall be made by way of either cheques or National Electronic Fund Transfer (NEFT) or Real Time Gross Settlement (RTGS) payments into the Solar Power Developer’s Designated Account. Amendments in PPA (2/2) To improve bankability of projects, DISCOMs have modified the PPA keeping in view fair provisions to Lenders 16
  • 17. Brief Overview of Bid Process 17
  • 18. Tender process was initiated by TSSPDCL on 1st April 2014 Bid Process for selecting the Solar Power Developer (1/4) Invite Proposals for selecting Bidders (RfS) Proposal Submission by Bidder Evaluation of Bids Selection of Bidder & award of contract RfS was issued by TSSPDCL on 1st April 2015 Pre-bid conference was conducted on 10th April 2015. The conference saw participation from over 300 prospective bidders After analyzing the various requests made by the Bidders and keeping in view the best interest of the DISCOMS and its consumers, TSSPDCL has issued amended RFS on 9 June 2015 Last date for submission of Bids i.e. Bid Deadline is 30 June 2015 18
  • 19. Event Revised Schedule Date of issue of RFS 1April 2015 Pre-Bid Meeting 10April 2015 Revision of RFS Documents 09 June 2015 Bid Deadline i.e. Last Date and Time for submission of Bids 30 June 2015 17:00 Hours Opening of PQ Bid 02 July 2015 Opening of Technical Bid 06 July 2015 Opening of Financial Bid of Qualified Bidders 20 July 2015  Scanned copies of the RFS Documents shall be uploaded on the eProcurement Website  Original Documents shall be sought only from the successful bidders  Single-stage bidding process where Technical and Financial Bids are submitted simultaneously Invite Proposals for selecting Bidders (RfS) Proposal Submission by Bidder Evaluation of Bids Selection of Bidder & award of contract Bid Process for selecting the Solar Power Developer (2/4) 19
  • 20. Non-Financial (Technical) Evaluation Financial Evaluation Invite Proposals for selecting Bidders (RfS) Proposal Submission by Bidder Evaluation of Bids Selection of Bidder & award of contract Bid Process for selecting the Solar Power Developer (3/4) 20
  • 21. Eligibility Criteria General Technical Financial WHO ALL CAN PARTICIPATE?  Any company formed under the companies Act 1956 or Companies Act 2013  Foreign companies  Limited Liability Companies (LLC)  Individuals (both foreign and Indian)  Partnerships (both foreign and Indian)  Limited Liability Partnerships (both Indian and foreign)  Consortiums with companies/firms/individuals as members can also participate but must necessarily nominate a lead member with controlling shareholding (i.e. minimum 51% paid up capital and voting rights)  Hybrid Consortiums with one or more members as Individuals/Partnerships/Companies  Group 1 Bidders need not form Project Company for implementing the Project. 1. Bid processing fee of Rs 10,000/MW to maximum of Rs 1,00,000 per Financial Bid 2. EMD of Rs 10 Lakhs per MW of offered capacity The Bidder shall deploy only commercially established and operational technologies to minimize the technology risk and to achieve timely commissioning of the Projects. Net Worth of Rs 1.5 crores/MW of total Bid Capacity Evaluation – Parameters (1/4) Technical evaluation would be overseen by an appropriate evaluation committee 21
  • 22. Check for Responsiveness of Bid Evaluation of fulfillment of qualification requirements Short-list Qualified Bidders for financial evaluation 1 2 3 Non- Responsiveness of Bids  Non-submission of bid processing fee as per RfS  EMD not as per RfS  Submission of financial bid in Technical Bid All Non-Responsive Bids are eliminated from the Bid Process. They are not evaluated technically or financially Fulfillment of Technical Requirements  Meet Net Worth requirements  Has submitted all other relevant documents  RfS authorizes TSSPDCL to seek clarification to remove any inconsistencies in the Bid  Accordingly, TSSPDCL may seek clarifications from Bidders for removing any inconsistencies  Bidders are solely responsible for removal of inconsistencies in their Bid to the satisfaction of TSSPDCL Financial Bids of ONLY those bidders who fulfill qualification requirements are opened (“Qualified Bidders) Qualification of Bidders Evaluation – Parameters (2/4) Financial Bids are submitted along with Technical Bids, but opened only if the Bidder is Qualified Bidder and meets qualification requirements 22
  • 23. Financial Evaluation Financial Bid shall comprise the following  Offered Capacity  Injection Voltage  Quoted Tariff under Group 1 or Group 2  List of Preferred Interconnection Substations (Min 1 and Max 10)where the Bidder shall connect the entire Offered Capacity – Each substation in the list shall be able to accommodate Offered Capacity Invite Proposals for selecting Bidders (RfS) Proposal Submission by Bidder Evaluation of Bids Selection of Bidder & award of contract Financial Bids are submitted along with Technical Bids, but opened only if the Bidder is Qualified Bidder and meets qualification requirements Evaluation – Parameters (3/4) 23
  • 24. 1. Ranking of Bids is in the following order of metrics i. Lowest Quoted Tariff ii. Higher Offered Capacity is given preference iii. Higher Net Worth is given preference 2. Multiple Financial Bids can be submitted by the Bidder. But allocation will happen in the stacking order of bid parameter only. Hence a bidder may have more than one position in the ranking order depending on the number of financial bids submitted All Qualified Bidders are stacked in the ranking order and project allocation shall be as per the rank Evaluation – Parameters (4/4) Invite Proposals for selecting Bidders (RfS) Proposal Submission by Bidder Evaluation of Bids Selection of Bidder & award of contract 24
  • 25. Allocation process – First Round (1/2) Financial Bids shall be ranked in ascending order of Quoted Tariff and the qualified bidder with lowest Tariff shall be declared as successful bidder for the offered capacity offered by such Qualified Bidder in the Financial Bid During the First Round of Allocation, the following conditions shall apply: • If the Available Capacity at the most preferred Interconnection Substation is less than the Offered Capacity, then the Qualified Bidder shall be allotted the next preferred Interconnection Substation from the List where Available Capacity is greater than or equal to the Offered Capacity. • If the Capacity Limit at any district is reached, then the Qualified Bidder shall be allotted the next preferred Interconnection Substation from the List, which corresponds to a district where the Capacity Limit is not reached • If the Capacity Limit at any district is reached, then the Available Capacity at all the Interconnection Substations in that particular district will become zero. • Further the Available Capacity at any Interconnection Substation shall be limited by the capacity at the Interconnection Substation required to reach the Capacity Limit in the District. During the First Round of Allocation, if there is no single Interconnection Substation in the List specified by the Qualified Bidder where Available Capacity is greater than or equal to Offered Capacity, then the Qualified Bidder shall be invited to select only one of the following options: • Develop Project(s) at a reduced capacity equal to the Available Capacity of such Interconnection Substations in the List , which has the highest Available Capacity • Split Offered Capacity into fractions (whole number only) across the Interconnection Substations in the List specified by the Bidder • Develop partial capacity at any one or more of the Interconnection Substations in the List and move to the Second Round of Allocation for balance capacity • Participate in the Second Round of Allocation for the entire Offered Capacity • Withdraw from the Bid process altogether in which case EMD will be returned. First round of allocation 25
  • 26. Allocation process (2/2) All Qualified Bidders moved to second round will be ranked in ascending order of bid parameter and will be invited to select Interconnection S/s from all the substations where there is Available Capacity after the first round Qualified Bidder(s) cannot select any Interconnection Substation already allotted to such Bidder during the First Round of Allocation The Qualified Bidder may opt for withdrawing from the Bid process in this round and in such case, EMD shall be returned within ten (10) days of issue of Letter of Intent (LOI) to all Successful Bidders Allocation will be carried out in respect of all the Qualified Bidders, remaining after the First Round of Allocation, in the ranking order of the Bid Parameter and the Authorized Representative reserves the right to change the Requisitioned Capacity Bidder can fragment offered capacity across substations in first round/second round, if no single Substation can accommodate the entire Offered Capacity • Available capacity at one shall be exhausted before selecting another s/s • A single Project shall be connected to a single Interconnection Substation only. In case of fragmentation of Offered Capacity, the Successful Bidder shall develop multiple Projects in line with number of Interconnection Substations selected • If the Capacity Limit at any district is reached, then the Available Capacity at all the Interconnection Substations in that particular district will become zero • Further the Available Capacity at any Interconnection Substation shall be limited by the capacity at the Interconnection Substation required to reach the Capacity Limit in the District. • Further, however, in this Second Round of Allocation, the Group 2 Qualified Bidder can opt for 33 kV side of 33/11 kV Interconnection Substation or 33 kV side of 132/33 kV Interconnection Substation in case of fragmentation of Offered Capacity, provided however, the Quoted Tariff of the Group 2 Qualified Bidder shall be revised to the lower of the Quoted Tariff specified by such Group 2 Qualified Bidder or the Lowest Quoted Tariff received for Group 1 Bids, whichever is less Second round of allocation 26
  • 28. Bidder #AB #CD #XY #PQ #AB #MN #EF #EF #GH Bid Parameter 3.400 3.500 3.800 3.900 4.100 4.200 4.200 4.300 4.300 Offered Capacity 100 MW 80 MW 60 MW 90 MW 45 MW 40 MW 20 MW 30 MW 30 MW Net worth 300 Cr 180 Cr 150 Cr 200 Cr 100 Cr 100 Cr 50 Cr 90 Crs 61 Crs Rank 1 2 3 4 5 6 7 8 9 Ranking of the Bidders Evaluation of Bids and allocation of Interconnection Substation 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 If both bid parameter and offered capacity are the same, bidder demonstrating higher net worth is given preference 28
  • 29. Substations: (Available capacity/ max capacity) Shadnagar (150/150) Veltoor (100/100) KM Pally (60/60) Durshed (50/50) Bidders (Capacity in MW) and their preferred s/s B1 (80) 1. Shadnagar 2. Veltoor B2 (50) 1. Veltoor 2. KM Pally 3. Durshed B3 (80) 1. Shadnagar 2. Veltoor B1 (80) B2 (50) B3 (80) Shadnagar can accommodate B1 B4 (30) 1. Veltoor B4 (100) 29
  • 30. Substations: (Available capacity/ max capacity) Shadnagar (70/150) Veltoor (100/100) KM Pally (60/60) Durshed (50/50) Bidders (Capacity) and their preferred s/s B1 (80) 1. Shadnagar 2. Veltoor B2 (50) 1. Veltoor 2. KM Pally 3. Durshed B3 (80) 1. Shadnagar 2. Veltoor B1 (80) B2 (50) B3 (80) Veltoor can accommodate B2 B4 (30) 1. Veltoor B4 (100) 30
  • 31. Substations: (Available capacity/ max capacity) Shadnagar (70/150) Veltoor (50/100) KM Pally (60/60) Durshed (50/50) Bidders (Capacity) and their preferred s/s B1 (80) 1. Shadnagar 2. Veltoor B2 (50) 1. Veltoor 2. KM Pally 3. Durshed B3 (80) 1. Shadnagar 2. Veltoor B1 (80) B2 (50) B3 (80) Shadnagar can NOT accommodate B3 Veltoor can NOT accommodate B3 B3 has five options: I. Develop Projects at a reduced capacity II. Split Offered Capacity into fractions III. Develop partial capacity at one or more Interconnection S/s from the list and move to second round for balance capacity IV. Move to second round for entire offered capacity V. Withdraw from the bid process altogether and EMD will be returned B4 (30) 1. Veltoor B4 (100) 31
  • 32. Substations: (Available capacity/ max capacity) Shadnagar (70/150) Veltoor (50/100) KM Pally (60/60) Durshed (50/50) Bidders (Capacity) and their preferred s/s B1 (80) 1. Shadnagar 2. Veltoor B2 (50) 1. Veltoor 2. KM Pally 3. Durshed B3 (80) 1. Shadnagar 2. Veltoor B1 (80) B2 (50) B3 (70) Shadnagar can NOT accommodate B3 Veltoor can NOT accommodate B3 B3 has five options: I. Develop Projects at a reduced capacity II. Split Offered Capacity into fractions III. Develop partial capacity at one or more Interconnection S/s from the list and move to second round for balance capacity IV. Move to second round for entire offered capacity V. Withdraw from the bid process altogether and EMD will be returned B1 (80) B2 (50) B4 (30) 1. Veltoor B4 (100) 32
  • 33. Substations: (Available capacity/ max capacity) Shadnagar (0/150) Veltoor (50/100) KM Pally (60/60) Durshed (50/50) Bidders (Capacity) and their preferred s/s B1 (80) 1. Shadnagar 2. Veltoor B2 (50) 1. Veltoor 2. KM Pally 3. Durshed B3 (80) 1. Shadnagar 2. Veltoor B1 (80) B2 (50) B3 (70) B1 (80) B2 (50) B4 (30) 1. Veltoor B4 (100) B3 selected 70 MW at Shadnagar in First Round and did not participate in the Second Round 33
  • 34. Substations: (Available capacity/ max capacity) Shadnagar (0/150) Veltoor (50/100) KM Pally (60/60) Durshed (50/50) Bidders (Capacity) and their preferred s/s B1 (80) 1. Shadnagar 2. Veltoor B2 (50) 1. Veltoor 2. KM Pally 3. Durshed B3 (80) 1. Shadnagar 2. Veltoor B4 (30) 1. Veltoor B1 (80) B2 (50) B3 (70) B4 (100) B1 (80) B2 (50) Veltoor can NOT accommodate B4 B4 has five options: I. Develop Projects at a reduced capacity II. Split Offered Capacity into fractions III. Develop partial capacity at one or more Interconnection S/s from the list and move to second round for balance capacity IV. Move to second round for entire offered capacity V. Withdraw from the bid process altogether and EMD will be returned 34
  • 35. Substations: (Available capacity/ max capacity) Shadnagar (0/150) Veltoor (50/100) KM Pally (60/60) Durshed (50/50) Bidders (Capacity) and their preferred s/s B1 (80) 1. Shadnagar 2. Veltoor B2 (50) 1. Veltoor 2. KM Pally 3. Durshed B3 (80) 1. Shadnagar 2. Veltoor B4 (100) 1. Veltoor B1 (80) B2 (50) B3 (70) B4 (50) B1 (80) B2 (50) Veltoor can NOT accommodate B4 B4 has five options: I. Develop Projects at a reduced capacity II. Split Offered Capacity into fractions III. Develop partial capacity at one or more Interconnection S/s from the list and move to second round for balance capacity IV. Move to second round for entire offered capacity V. Withdraw from the bid process altogether and EMD will be returned B4 opted to participate in 2nd round for balance 50 MW 35
  • 36. Illustration – District capacity Mahbubnagar (100/ 100) Kothur (60/60) Makthal (50/50) Nagarkurnool (40/40) Kodad (25/25) (Available capacity/ Max capacity) in MW B1 (40) 1. Kothur 2. Makthal Nalgonda(150/ 150) Suryapet (60/60) B2 (40) 1. Makthal 2. Nagarkurnool B3 (20) 1. Kothur 2. Makthal B4 (20) 1. Nagarkurnool 2. Kodad Kothur s/s accommodates B1 B1 (40) B2 (40) B3 (20) B4 (20) 36
  • 37. Illustration – District capacity Mahbubnagar (60/ 100) Kothur (20/60) Makthal (50/50) Nagarkurnool (40/40) Kodad (25/25) (Available capacity/ Max capacity) in MW B1 (40) 1. Kothur 2. Makthal Nalgonda(150/ 150) Suryapet (60/60) B2 (40) 1. Makthal 2. Nagarkurnool B3 (20) 1. Kothur 2. Makthal B4 (20) 1. Nagarkurnool 2. Kodad B1 (40) B2 (40) B3 (20) B4 (20) 37
  • 38. Illustration – District capacity Mahbubnagar (60/ 100) Kothur (20/60) Makthal (50/50) Nagarkurnool (40/40) Kodad (25/25) (Available capacity/ Max capacity) in MW B1 (40) 1. Kothur 2. Makthal Nalgonda(150/ 150) Suryapet (60/60) B2 (40) 1. Makthal 2. Nagarkurnool B3 (20) 1. Kothur 2. Makthal B4 (20) 1. Nagarkurnool 2. Kodad Makthal s/s accommodates B2 B1 (40) B2 (40) B3 (20) B4 (20) 38
  • 39. Illustration – District capacity Mahbubnagar (20/ 100) Kothur (20/60) Makthal (10/50) Nagarkurnool (40/40) Kodad (25/25) (Available capacity/ Max capacity) in MW B1 (40) 1. Kothur 2. Makthal Nalgonda(150/ 150) Suryapet (60/60) B2 (40) 1. Makthal 2. Nagarkurnool B3 (20) 1. Kothur 2. Makthal B4 (20) 1. Nagarkurnool 2. Kodad B1 (40) B2 (40) B3 (20) B4 (20) 39
  • 40. Illustration – District capacity Mahbubnagar (20/ 100) Kothur (20/60) Makthal (10/50) Nagarkurnool (40/40) Kodad (25/25) (Available capacity/ Max capacity) in MW B1 (40) 1. Kothur 2. Makthal Nalgonda(150/ 150) Suryapet (60/60) B2 (40) 1. Makthal 2. Nagarkurnool B3 (20) 1. Kothur 2. Makthal B4 (20) 1. Nagarkurnool 2. Kodad Kothur s/s accommodates B3 B1 (40) B2 (40) B3 (20) B4 (20) 40
  • 41. Illustration – District capacity Mahbubnagar (0/ 100) Kothur (0/60) Makthal (10/50) Nagarkurnool (40/40) Kodad (25/25) (Available capacity/ Max capacity) in MW B1 (40) 1. Kothur 2. Makthal Nalgonda(150/ 150) Suryapet (60/60) B2 (40) 1. Makthal 2. Nagarkurnool B3 (20) 1. Kothur 2. Makthal B4 (20) 1. Nagarkurnool 2. Kodad B1 (40) B2 (40) B3 (20) B4 (20) 41
  • 42. Illustration – District capacity Mahbubnagar (0/ 100) Kothur (0/60) Makthal (10/50) Nagarkurnool (40/40) Kodad (25/25) (Available capacity/ Max capacity) in MW B1 (40) 1. Kothur 2. Makthal Nalgonda(150/ 150) Suryapet (60/60) B2 (40) 1. Makthal 2. Nagarkurnool B3 (20) 1. Kothur 2. Makthal B4 (20) 1. Nagarkurnool 2. Kodad B1 (40) B2 (40) B3 (20) B4 (20) Even though Nagarkurnool s/s has capacity to accommodate B4 no capacity will be allotted at the substation as District Capacity Limit is reached 42
  • 43. Illustration – District capacity Mahbubnagar (0/ 100) Kothur (0/60) Makthal (0/50) Nagarkurnool (0/40) Kodad (25/25) (Available capacity/ Max capacity) in MW B1 (40) 1. Kothur 2. Makthal Nalgonda(150/ 150) Suryapet (60/60) B2 (40) 1. Makthal 2. Nagarkurnool B3 (20) 1. Kothur 2. Makthal B4 (20) 1. Nagarkurnool 2. Kodad B1 (40) B2 (40) B3 (20) B4 (20) Capcity of all s/s under Mahbubnagar shall be reduced to 0. Kodad under Nalgonda district accommodates B4 43