Andhra Pradesh releases its RFS for Grid connected Solar Plants

After TN failing miserably due to various issues on its 1000 MW ambitious solar plan, AP has taken up the baton. We anticipate that the credit ratings of the DISCOM may play a key role in getting in more players willing to setup plants in Andhra.

Click here for the document

Last date of submission is 7th Feb 2013. This mammoth 286 page document is quite comprehensive on everything but there are a number of limitations in the policy which in order to create distributed generation (the right way to go) limits the MW for each substation type. Also the AP EB is looking to gather a significant amount of money just from registrations as well with a non refundable fee of Rs. 2 lakhs per location.

Short key extracts below

1. At 33/11 kV Substation: 1 to 5MW capacity of solar projects at evacuation voltage of 33kV. A maximum of 5 MW are permitted at 33/11kV substation. However the bidder can quote based on the availability as per the identified respective substations only.

2. At 132/33 kV Substation: 1 to 10 MW of solar projects at 33kV connection voltage level and 10 to 20 MW of solar projects at 132 kV evacuation voltage level. However the bidder can quote based on the availability as per the identified respective substations only.

3. Non-refundable processing fee of Rs 2.00 lakhs for each Location in the form of Demand Draft payable to APPCC A/c. No. 52117479223 at Hyderabad or the same by online payment through RTGS (RTGS details as per Annexure – C for RTGS). Bid submitted without or insufficient processing fee shall be liable for rejection without any intimation

4. The total capacity of Projects to be Bid for by a Company including its Parent, Affiliate or Ultimate Parent-or any Group Company shall be limited to 200 MW (Maximum Cumulative Capacity) across Locations.

5. Net worth required is a Crore per MWp

6. The PPA shall be executed between the Selected Bidder(s) and DISCOM(s) after acceptance of LOI by the Bidder. Power Purchase Agreement will be valid for tenure of 20 years from the date of scheduled COD or from actual COD in case of delay, subject to clause 3.20.

7. Maximum CUF allowed is 25% post which power will be bought at Rs. 3 /KWh unit

8. Whether or not financial resources of Parents and/ or Affiliates(s) are relied upon to achieve the required net worth, the required net worth has to be infused in the Project Company before signing of PPA. The bank statement will also be required to be submitted before 7 days of signing of PPA. For exhibiting shareholding pattern indicating the controlling shareholding a certificate from the Chartered Accountant should be submitted as on any date within 7 days prior to the date of submission of the bid document.

9. The Interconnection Line from Project switchyard to the designated substation has to be constructed and maintained by the Developer at his cost. The entire cost of transmission including cost of construction of lines, metering equipment, losses, supervision charges etc., from the Project up to the Interconnection Point shall be borne by the Developer and shall not be reimbursed by DISCOM(s). Right of way (RoW) acquisition for laying of the interconnection lines shall lie with the Developer.

10. After opening of the commercial bids, the Bidders will be listed in the order of their quoted Tariff as L1, L2, L3……………….Ln, and L1 Tariff will be finalized for each Location. Only L1 Bidder in each Location will be offered the project in that particular Location.

11. Price bid provision made for 161 locations and its associated injections points. Bidder has to quote INR/kwh against the same chosen injection point in technical bid.

12. If Developer fails in plant commissioning within 12 months, DISCOM shall encash the Performance Bank Guarantee in the following manner. 

a) Delay up to one month from scheduled COD: 2 lakhs/MW of capacity not commissioned.

b) Delay of more than one month up to two months from scheduled COD: 3 lakhs/MW of capacity not commissioned. 

c) Delay of more than two months up to four months from scheduled COD: 5 lakhs/MW of capacity not commissioned.

d) Delay of more than 4 months:· In case of part commissioning, the Agreement shall be
amended to reflect the capacity that has been commissioned · Else, the Agreement stands terminated for unfulfilled obligation. CPBG will be returned on COD. If commissioning doesn’t happen within 15 months of signing this Agreement,
the CPBG will be encashed.

13. The Solar Power Developer will be paid an incentive by DISCOM for early commissioning. The incentive will be paid as follows: 

i. Commissioning between 30 and 59 days before Scheduled COD: Rs 1 lakh/MW of capacity commissioned. 

ii. Commissioning between 60 and 89 days before Scheduled COD: Rs 2 lakh/MW of capacity commissioned. 

iii. Commissioning before 90 days of the Scheduled COD: Rs 3 lakh/MW of capacity commissioned.


Click here for the list of qualified bidders

About Ritesh Pothan

Ritesh Pothan, is an accomplished speaker and visionary in the Solar Energy space in India. Ritesh is from an Engineering Background with a Master’s Degree in Technology and had spent more than a decade as the Infrastructure Head for a public limited company with the last 9 years dedicated to Solar and Renewable Energy. He also runs the 2 largest India focused renewable energy groups on LinkedIn - Solar - India and Renewables - India
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