CSP World

India's Karnataka Renewable Energy Development Limited (KREDL), a nodal agency of the Government of Karnataka has launched a Request for Proposal (RfP) to develop up to 130 MW of solar power projects in the Indian state.

The RfP is looking for bidders to develop either PV or CSP projects, with a minimum capacity of 3 MW and a cap of 10 MW. In the case of Concentrated Solar Power, such a cap would not be a good decision, as we know, for the experience in current operational plants, that a larger size would allow to reduce the cost per MW. Moreover, there is not a quota for each technology in the RfP.

The bidding will be conducted under the reverse bidding system, i.e. the bidders must apply a discount to the approved tariff. For this bidding process, the tariff for CSP has been set to 11.35 Rs. per kWh (roughly $0.21) and the tariff for PV is Rs. 14.50 (about $0.27). This figures were approved by Karnataka Electricity Regulatory Commission in 2010.

Winning projects will be selected starting from the lowest effective price offered (approved tariff minus discount) until the aggregate capacity of 130 MW is reached. The awarded bidders for the CSP plants will be responsible to make arrangements for water supply and to deploy the necessary transmission line to the nearest substation.

This is the same system used in the first phase of JNNSM which has been criticized as an ineffective way of promoting a proper deployment of CSP plants. Indeed, the plants awarded in the first round are delaying its commissioning and this has caused to delay the second phase.

Technology

For CSP, any of the current commercially available technology is able to be deployed, parabolic trough tower, linear Fresnel or parabolic dish.

The required experience has been drafted as follows:

1. Developer is himself a technology provider who has either experience in design and engineering of at least 1 (one MW capacity solar thermal power plant having been in operation for a period of at least one year on the specified cutoff date, or obtained at least one financial closure of a solar thermal power plant of at least 50% of the proposed capacity based on the proposed technology.
2. Developer has a tie-up with a technology provider fulfilling technology requirements at S. No. (1) above.
3. Developer is an EPC contractor/power generating company having experience in engineering, erection and commissioning of at least 100 MW capacity conventional thermal power plant and a tie-up with a technology provider fulfilling technology requirements at S. No. (1) above.
4. Developer has a tie-up with an EPC contractor having experience in engineering, erection and commissioning of at least 100 MW capacity conventional thermal power plant and a tie-up with a technology provider fulfilling technology requirements at S. No. (1) above.
5. Developer is an EPC contractor having experience in engineering, erection and commissioning of at least 1 (one) MW capacity solar thermal power plant and a tie-up with a technology provider fulfilling technology requirements at S. No. (1) above.
6. Developer has a tie up with an EPC contractor having experience in engineering, erection and commissioning of at least 1 (one) MW capacity solar thermal power plant and a tie-up with a technology provider fulfilling technology requirements at S. No. (1) above.

In terms of technology, it's worth noting that there is no mention to the use of a backup fuel for keeping temperature of Heat Transfer Fluids nor the the use of thermal storage system. Anyway, it's expected that some of the applicants submit queries about these topics, as they play a key role in most of the CSP projects.

Economics

The Power Purchase Agreement (PPA) to be signed by the winner projects will be for a 25 years period with the price offered in the bidding process, i.e. the approved tariff minus the discount offered. The signing of the PPA will be held within 30 days after the acceptance of the project. Financial closure for the plants must be achieve within 180 days after the signing of the PPA.

For the CSP technology, the plants must be commissioned within 24 months from the date of signing of the PPA. If a developer fails to meet the deadline, the generation off-taker will apply a provision in terms of a percentage of the 'Performance Security'. A delay of more than 4 months will cause the termination of the PPA.

The bidders must have a minimun net worth of Rs. 20 million ($368,000) per MW of the proposed capacity

The 'Performance Security' above mentioned, is a bank guarantee that the awarded bidders must submit. It's comprised by the sum of a Bid Security, a Performance Guarantee and a Performance Bond.

Timeline

• Last date for receiving queries - March 12, 2013 , 1430 Hrs
• Pre-Bid Conference - March 12, 2013 , 1430 Hrs
• Bid Due Date - March 28, 2013 , 1630 Hrs
• Due Date for hard copy submission of Bid - March 29, 2013 , 1630 Hrs
• Opening of Bid (except Financial Bid) - April 01, 2013 , 1100 Hrs
• Opening of Financial Bid To be intimated later
• Issue of Letter of Award To be intimated later
• Issue of Allotment Letter, if required To be intimated later
• Bid Validity Period - 180 days from Bid Due Date
• Signing of the Power Purchase Agreement - 30 days from the acknowledgement of LOA or Allotment Letter as the case may be

Full RfP can be found here