Andhra Pradesh released its RfS for 1000 MW of solar power purchase. This comes just a day after TN released its own tender document for 1000 MW of solar PV projects. (Update: Excerpts from the Pre-bid Consultative Meeting Held on Dec 14 in Hyderabad)
Request for Selection Document for Grid Connected Solar Power Projects – Download from here
Its suddenly raining 1000 MW of solar projects.
Just why AP had to release this as a separate one, and this was not mentioned in their original solar policy – which did not have any bid-based purchase by the utility – puzzles me. Someone must have told them that they had missed a key element way after the policy was released. Better late than never!
Excerpts from the AP Policy
Our specialty focus areas include 
- Competitive bidding process. Guess will be the same reverse bidding we have seen elsewhere
- 25 year PPA (why TN went for 20 years is something I still cant figure out)
- The bidder is at liberty to choose solar PV/STP (solar thermal power) technology suitable for setting up of solar power projects – Hmmpph, this appears to complicate things a wee bit. I hope they will consider these bids separately – they cant screw up so badly, can they!
- Min 1 MW, max 20 MW. Makes sense, much more sense than the TN policy which has not proposed ANY upper limit
- EMD 2 lacs per MW – so folks, pretty much anyone (with some money) can apply
- Net worth 1 crore per MW
- No change in the controlling shareholding of the bidding company or bidding consortium developing the project shall be permitted from
the date of response to the RfS till the execution of the PPA. However, in case the Project is developed by a listed Company this condition will not be applicable. After execution of the PPA, the controlling shareholding of the bidding company or lead member( in case of consortium ) in the project company developing the project shall be maintained for a period of (1) one year after Commercial Operation Date (COD). Some relief from middlemen and speculators. - Requirement of land for project development @ 2 hectares / MW is under clear possession of the project developer. In this regard the project developer shall be required to furnish the following documentary evidence. Ownership hold rights for at least 30 years in the name of the project developer and possession of 100% of the area of land required for the project. That’s about 5 acres per MW, fine for PV, STP might require more?
- They are also willing to consider CPV. But is there anyone running even a 1MW plant on CPV in India, will be glad if someone could answer!
- Pre-bid meeting is on 14 Dec 2012. Chalo Hyderbadu.
Hello Narsi..Thank you for the post.so, what do you think would be a fair price where a developer could make money even with a bank loan of 70% # 15 p.a.
Also, can a developer setup the plant anywhere in A.P or do they have a list of substations?
I do see a list of substations.Hope the project developers will be realistic n their expectations and not quote 8 Rs/- per unit as the initial wave of bidders have done in other states.Those developers are left out of pocket now with such low rate PPAs