Andhra Pradesh Solar Bidding and Open Offer Update

Andhra Pradesh and Tamil Nadu have been the most followed states in the recent times on the Solar front owing to their hugely popular 1000 MW Solar tenders (Andhra Pradesh and Tamil Nadu) and Net Metering Policies (Andhra Pradesh and Tamil Nadu).  As announced a couple of weeks back, Tamil Nadu is trying to expedite things resulting in close to 700 MW expected to be signed by the end of October. On the Andhra Pradesh front, while no official announcement has been made, sources indicate that close to 49 MW of PPA from 5 companies have been signed as part of the Solar bidding that was conducted in February this year. It is also learned that close to 86 MW from around 11 developers are at various stages of the process and Performance Bank Guarantees (PBG) have already been submitted for the same. In all, close to 135 MW seems to be potentially tied up in PPAs which is considerably less compared to the size of 1000 MW for which …

APTRANSCO issues Open Offer to Solar Power Developers

After a long wait, APTRANSCO has finally issued Open Offer inviting Solar Power Developers to sell Solar Power at Rs.6.49/unit. As per the notification issued, interested parties have until 30th September, 2013 to submit their application with details about the location, injection point and capacity of power to be injected. While there is no bidding process involved, locations which get applications in excess of the capacity of that location will be awarded at pro-rata basis. Most of the conditions with respect to Net Worth, Performance Bank Guarantee, Security Deposit, Commissioning Timelines remain the same as they were in the bidding process.  APTRANSCO has issued a list of locations which are available to interested developers. The initial list of 161 locations in the bidding process is reduced to 109 locations for the Open Offer owing to fill up of certain locations. Locations such as Suryapet, Ramannapet, Kanigiri and Sadasivpet have a reduced capacity due to partial fill-up by bidders. In addition to the 109 locations, developers may also choose any other …

AP Net Metering Policy – Guidelines for implementation

Earlier in June, the Government of Andhra Pradesh released an Order (G.O.Ms.No.27) containing guidelines for making payment for surplus energy injected into the grid as a part of the AP Rooftop Solar Net Metering policy. As per this order, payment shall be considered by the concerned APDISCOMS at pooled cost as decided by APERC for that year and this payment will be made effective for 7 years from the date of establishment of such a plant. Our blogpost for more details on this order can be accessed here. Following this, guidelines for implementation of this net metering policy have recently been released on the APTRANSCO website. Given below are some of the important points from this document. Meters: A single bi-directional BIS/ISI certified meter is to be installed for export and import For PV systems up to: 10 kW – Class 1 accuracy meters, Above 10 kW – 0.5 class accuracy, HT systems (56 kW and above) – 0.2 class accuracy meters are to be installed Subsidy: MNRE subsidy, Government of AP subsidy and any other subsidy relevant …

APTRANSCO notification regarding closure of Solar bidding process

APTRANSCO recently published a notification intimating the closure of Solar bidding process. As per the notification, all those bidders who have decided not to go ahead with the tariff of Rs.6.49/unit are required to collect their BGs from APTRANSCO in person or can request the same to be sent through post. The last date for collecting the BGs has been mentioned as 19-08-2013. The notification may be downloaded here. As previously intimated by APTRANSCO, those who have not participated in the bidding process may also come forward to setup Solar Power plants and sell power to the DISCOMs at Rs.6.49/unit. While this has not yet started, a notification by APTRANSCO is soon expected in this regard. Though there have been news about more than 350 MW being agreed to for the APTRANSCO tariff of Rs.6.49/unit, it is not yet clear how many bidders have finally decided to go ahead with the tariff. Those bidders who have already collected the LoI also seem to be re-thinking about their plans to go …

AP Solar Bidding Update – More companies allowed to set up Solar PV plants

After receiving offers from 35 bidders (contributing to 418 MW capacity) who accepted the solar purchase price of Rs. 6.49/unit, the Andhra Pradesh Government has now decided to allow any company to set up a solar PV plant assuring them of Rs. 6.49/unit. This information was published in The Hindu Business Line on July 10th. According to this article, Chief Minister N. Kiran Kumar Reddy approved the proposal of AP Transco to give an opportunity to all the solar power developers, including those who did not participate in the recently concluded competitive solar bidding for 1000 MW. Interested developers are required to submit their applications within four weeks. The original article published in The Hindu Business Line can be accessed here.

APTRANSCO receives responses for 350 MW

After the issuance of a letter inviting bidders to submit responses for a tariff of Rs.6.49/unit last month, APTRANSCO received responses for 350 MW as per the article on Business Line this Thursday. While the responses have been received for 350 MW, it is not the case that the 34 bidders who contributed to this number have accepted the price unconditionally. As per information available, only 7 bidders (contributing to 53 MW) seem to have accepted without any conditions. The remaining 297 MW from 27 bidders were accepted subject to conditions such as change in location, capacity and if possible, price too. As per unconfirmed reports, Essel Mining and Industries Ltd. and Sunborne Energy Services India Pvt. Ltd. contributed to 40 MW out of the confirmed 53 MW. A German company (name not available) agreed to another 5 MW and rest of the 8 MW-odd capacity was accepted by 3-4 bidders in the 1-2 MW range. While many in the industry are still trying to figure out how a tariff of Rs.6.49/unit can work …

AP Govt. fixes Solar bidding benchmark tariff at Rs.6.49/unit

In what can be called a disappointing update, Andhra Pradesh Government has announced that the Benchmark Price for the recently concluded Solar Bidding would be Rs.6.49/unit. While some of you reading this might immediately be tricked into thinking that this is more or less the same as that of Tamil Nadu’s Benchmark Price, please be informed that AP Solar bidding does not have year-on-year tariff escalation. This means that the tariff would be a flat rate of Rs.6.49/unit for the duration of the PPA i.e. 20 years. Though there is no official announcement yet made by APTRANSCO, this information is based on the announcement made by the Govt. further to today’s GoM meeting. It is a well known fact that Rs.6.49/unit is the State-wide lowest bid submitted by Sunborne Energy. While it might have been pretty easy for the govt. to decide on the Benchmark Price as the lowest tariff bid received, the tariff is simply not workable for smaller projects planned to be setup by first time entrants into …

AP’s first REC based Solar PV project accredited

Almost 7 months after the AP Solar Policy was announced, Andhra Pradesh finally has a Solar PV project accredited under the REC mechanism. Accredited on 8th April, 2013, the 5.75 MW by KCP Limited is the first REC based Solar PV project to be accredited in Andhra Pradesh. Until now, Rajasthan, Maharashtra and Madhya Pradesh have been the major contributors to REC based Solar PV  projects in India contributing to 89% of total accredited capacity of 109.505 MW. Odisha, Chattisgarh and Tamil Nadu and contribute to the remaining capacity with each having 1 or 2 projects Accredited. The following table shows state-wise Solar PV accredited capacity: (State wise % Solar PV capacity accredited under REC mechanism) While there was much ambiguity in the minds of a lot of Solar Power Developers in terms of the procedural delays for REC accreditation in Andhra Pradesh, this first project would set the precedent and pave the way forward for more and more projects to be accredited in the state under REC scheme. The list …

AP’s new Net Metering policy – Grid interactive rooftop and small SPV plants

The government of Andhra Pradesh released a  government order, GO MS. No. 22, to provide net metering facility to the consumers. You can download the original document HERE.   Guidelines for implementation: Only for 3 phase service consumers. Single phase consumers are not eligible. Consumer will generate solar power for self consumption and feed excess power into the grid. The meter records net energy between export of generated energy and import of DISCOM energy for a billing month. Alternately, it can record both the import and export values and the net energy for the billing period can be calculated. In a billing month, if there is a net import you pay the applicable retail supply tariff decided by the concerned DISCOM. If there is a net export, you wont get paid for it. The consumer/SPV generator also has to set up a protection system on their premises with “Islanding” for events like grid failures The entire cost of metering arrangement and accessories are to be paid by the consumer. The consumer needs to submit …

Andhra Pradesh Solar – Commercial Bid details

…[Update 1 - 7th March, 2013: Name of Location No.14 should be Pedatadepalli and not Jangareddygudem as mentioned in all the PQ/Technical bid/Commercial bid excel sheet made available at the time of bidding. Jangareddygudem is the name of Location No.13. ]… …[Update 2 - 7th March, 2013: Details of L1 bidders at each location have been published]… …[Update 3 - 23rd March, 2013: L1 bidder for Peddashankarampeta (Location No.75) has been updated from Astonfield Renewables Pvt. Ltd. (Bid Price: Rs.7.48/Kwh) to Essel Mining and Industries Ltd. (Bid Price: Rs.6.5299/Kwh)]…   As previously announced, APTRANSCO held a meeting on 5th March, 2013 for Price Bid opening for the recently concluded AP Solar bidding. [Check out our previous blogpost containing Technical Bid analysis here.] During the meeting, APTRANSCO announced list of bidders who are technically qualified. 181 out of the original 184 bidders have been announced as technically qualified. Check out the APTRANSCO document containing the complete list here. It may come as a surprise to a lot of bidders that 3 new companies – …

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