Location: Vidyut Soudha, Khairatabad, Hyderabad
Duration of the meeting: Meeting was conducted in 3 batches with each lasting for 1-1.5 hours.
No. of people attended: 500+ (Whoa!!)
Long day at APTRANSCO office today. Here are the updates of what happened at the pre-bid meeting.
The meeting was poorly planned as, clearly, dividing the whole bunch of 500+ attendees into 3 different groups ticked off people who were waiting since morning but were asked to attend the 3rd batch of the meeting just because they were from Hyderabad (this included us). Preference was given to those who have come from outside of Hyderabad so that they can leave early owing to their plans to travel back.
Finally, when the meeting (3rd batch) kicked off at 1:30 PM, APTRANSCO officials announced a few important points from the discussions in the previous 2 batches:
- Time-frame to setup an SPV plant (6 months as per RfS document) will be reconsidered.
- In the case of a winning bid, the single quote that was submitted during the bidding process will be fixed for 25 years i.e. no tariff escalation as in the case of TN 1000 MW programme.
- PPA for 25 years is the only security for a project developer. No specific mention about security was made though there was talk about a 1 month revolving Letter of Credit (LC).
- L1 bidding is to be taken at the local substation level, not at the state or region level.
Further to this, the floor was declared open for questions and questions just poured in during the next one hour. The following are the important points that were gathered:
- APTRANSCO has nothing to do with the land. It can be any land, doesn’t matter as long as APERC/CERC guidelines have been met.
- 20% PLF limit will not be applicable. The final value of power is taken at the meter level. The meters will be set up at the substation (132 or 33 KVA) and the payments will be made as per the metered energy.
- Clarity in terms of members of a consortium to be either individual or partnership needs to be given. There is still some info to be given on this.
- The developers need to talk to the substations on how much of capacity is available at the substation they want to inject power into. It is their responsibility, not APTRANSCO’s.
- Developer has to get information regarding how many bays are available in a local substation.
- Billing period is 60 days. 2% will be deducted for early payments – all payment rules as per APTRANSO’s existing guidelines.
- No limit for capacity generation from the developers. Developers can submit different quotations at different substations according to the capacity.
- Lines and connections to the 33KVA substation have to be laid & maintained by developer. No new connections need to be given by AP Transco.
- No clearances required from AP Transco. All mandatory clearances from other govt departments have to be taken up.
- Benchmark price will be determined by the expert committee post the submission of bids - Biggest point of controversy. Also, it will be uniform across the state. Upon probing as to how a bidder will be able to understand at what price he can quote without a definite benchmark, officials simply said that it is the government policy.
- Either L1 or Benchmark price (in case L1 > Benchmark Price) is the lowest to be taken up at a substation level.
- Penalty for shortfall in supply of electricity will be calculated as product of PPA tariff (signed) and difference in injected power and minimum guaranteed power.
- Committee Determined Benchmark Price is going to be the ceiling price. If L1 > Benchmark price, then benchmark price will be paid by the govt.
Overall, questions have been answered but concerns about the method of benchmark pricing and the timing of announcement for the same needs to be addressed. How transparent will the process be is the key! It waits to be seen as to how many of the above points will make their way into the final RfS document.
Amid high drama, the meeting ended with the APTRANSCO officials announcing that all queries that have been asked during the meeting and also those that haven’t been asked be sent through email to firstname.lastname@example.org
Alternatively, you may also contact APTRANSCO on the following numbers regarding the Solar bid process:
We would request our readers to let us know any additional queries you might be having so that either we can clarify it or we can forward the same along with a bunch of other queries that weren’t clarified today.
- Team EfficientCarbon