Full Text
EXTRAORDINARY
PART I —Section 1
PUBLISHED BY AUTHORITY
No. 183] NEW DELHI, FRIDAY, JULY 28, 2023/SHRAVANA 6, 194 5
CG-DL-E-01082023-247724
CG-DL-E-01082023-247724
MINISTRY OF POWER
RESOLUTION
New Delhi, the 28 th July, 2023
Guidelines for Tariff Based Competitive Bidding Process for Procurement of Power from Grid Connected
Solar PV Power Projects.
No. 27/01/2023 -RCM .—1. INTRODUCTION
1.1. Background
1.1.1. Promotion of competition in the electric ity industry in India is one of the key objectives of the Electricity
Act, 2003 (‘Act’). Power purchase costs constitute the largest cost element for distribution licensees.
Procurement of electricity through competitive bidding by the distribution license es is expected to
reduce the overall cost of procurement of power and facilitate development of power markets.
Internationally, competition in wholesale electricity markets has led to reduction in prices of electricity
and in significant benefits for consu mers.
1.1.2. Section 61 & 62 of the Electricity Act, 2003, provide for tariff regulation and determination of tariff of
generation, transmission, wheeling and retail sale of electricity by the Appropriate Commission. Further,
section 63 of the Act states that –
“Notwithstanding anything contained in section 62, the Appropriate Commission shall adopt the
tariff if such tariff has been determined through transparent process of bidding in accordance with
the guidelines issued by the Central Government."
1.1.3. These Guideli nes are being issued under section 63 of the Act to enable procurement of Solar power by
Procurers from grid -connected Solar Photovoltaic (PV) power projects, with or without Energy Storage
through tariff based competitive bidding.
1.2. Objectives
1.2.1. The specific objectives of these Guidelines are as follows:
(a). To promote competitive procurement of electricity from solar PV power plants, by distribution
licensees;
(b). To facilitate Solar PV capacity addition and fulfilment of Renewable Purchase Obligation (RPO)/
Energy Storage Obligations (ESO) requirement of DISCOMs;
(c). To provide a transparent, fair, standardized procurement frame work based on open competitive bidding
with appropriate risk -sharing between various stakeholders to enable procurement of power at
competitiv e prices in consumer interest, improve bankability of projects and ensure reasonable returns to
the investors; and
(d). To provide for a framework for the inter -state/ intra -state, long -term, sale -purchase of power as a further
measure to de -risk the sector.
2. SCOPE OF THE GUIDELINES
2.1. Applicability of Guidelines
(a) These Guidelines are being issued under the provisions of Section 63 of the Electricity Act, 2003 for
long term procurement of Solar power by the ‘Procurers’, from Solar PV Power Projects
(‘Projects ’), with or without Energy Storage, through competitive bidding.
(b) Upon notification of these Guidelines in the Official Gazette, the erstwhile “Guidelines for Tariff
Based Competitive Bidding Process for Procurement of Power from Grid Connected Solar PV
Powe r Projects” issued vide resolution No. 23/27/2017 -R&R dated 3rd August, 2017, and amended
vide resolution No. 23/27/2017 -R&R dated 14th June, 2018, resolution No. 23/27/2017 -R&R dated
3rd January, 2019, resolution No. 23/27/2017 - R&R dated 9th July, 2019, resolution No.
283/57/2018 -GRID SOLAR dated 22nd October, 2019 and resolution No. 283/57/2018 -GRID
SOLAR dated 25th September, 2020, shall not be applicable for tenders issued subsequent to
issuance of these Guidelines. However, the projects already awarde d/ under implementation/
commissioned under the erstwhile Bidding Guidelines, will continue to be governed by those
Guidelines and will not be covered under these Guidelines. In case there are any ongoing bids
wherein the last date of bid submission is aft er the date of notification of these Guidelines, then the
tender documents in respect of such bids shall be appropriately modified to bring them in alignment
with these Guidelines.
2.2. Explanations
(a). ‘Solar’: The term ‘Solar’ , wherever used in these Guidelines, shall refer to Solar Photovoltaic (PV)
technology or the power plant based on such technology.
(b). ‘Solar Power’: The term ‘Solar Power’wherever used in these Guidelines, shall refer to power from Solar
Power Generating Systems with or without Energy Storage S ystems (ESS), as the case may be. It is clarified
that ESS charged using a source other than solar power would not qualify as solar power.
(c). Solar Power Generator’ (SPG)
(i). The term Solar Power Generator ‘(SPG) or Generator‘, wherever used in these Guidelines, shall refer to a
generator and supplier of Solar Power with or without energy storage system.
(ii). The bidder/developer shall be responsible for providing solar based generating system(s) for supply of
solar power combined with or without storage, as per the te rms of the Request for Selection (RfS). For the
storage component, if any, the bidder/developer shall either set up storage capacity itself; or tie up with
energy storage system developer(s) to meet the project parameters, and submit a single bid for the s ame,
in a particular tender.
(iii). Irrespective of the contractual arrangement between the Generator and Energy Storage system Developer,
if any, all the developer related liabilities, under these Guidelines and the PPA thereunder, shall be of the
entity signing the PPA, and recognised as Solar Power Generator‘ (SPG).
(d). ‘RE Park’: The term ‘RE Park’, wherever used in these Guidelines, shall refer to areas or parks developed,
in accordance with the Guidelines issued by Central or State Governments, for setting -up of renewable
energy power projects, including Solar -Wind Hybrid Power projects.
(e). ‘Procurer ’: The term ‘Procurer’, as the context may require, shall mean the distribution licensees, or the
Authorized Representative(s), or an Intermediary Procurer.
(f). ‘Authorised Representative’ of the Procurer: In cases, where the Power Purchase Agreement (PPA)
signing agency and the agency carrying out the tendering / bidding process are different, the agency carrying
out the tendering / bidding process shall deemed to be the Aut horized Representative of the ‘Procurer’ and
shall, on behalf of the Procurer, be responsible for fulfilling all the obligations imposed on the ‘Procurer’
during the bidding phase, in accordance with these Guidelines.
(g). ‘Intermediary Procurer’ & ‘End Procure r’
(i). In some cases, an intermediary, as designated by Ministry of New and Renewable Energy, Government of
India, or a State Government, may be tasked to aggregate the power purchased from different Solar Power
Generators and sell it to the distribution licen see(s)/consuming entities/open access consumers. In such
cases, the distribution licensees/consuming entities/open access consumers shall be the “End Procurer”
and the intermediary shall be “Intermediary Procurer” for the purpose of these Guidelines.
(ii). The I ntermediary Procurer shall enter into a Power Purchase Agreement (PPA) with the Solar Power
Generator and also enter into a Power Sale Agreement (PSA) with the End Procurer. The PSA shall
contain the relevant provisions of the PPA on a back -to-back basis. Trading margin, of Rs. 0.07/kWh
shall be payable by the End Procurer to the Intermediary Procurer.
(iii). As long as the Intermediary Procurer has followed these Guidelines for procurement of power, the End
Procurer shall be deemed to have followed these Guidelin es for procurement of power.
(h). Scheduled Commencement -of-Supply Date (SCSD ): Scheduled Commencement -of-Supply Date (SCSD)
in relation to the contracted capacity shall mean the date corresponding to the date of commencement of
supply as indicated in the RfS ( Request for Selection).
2.3. Unless explicitly specified in these Guidelines, the provisions of these Guidelines shall be binding on the
Procurer/ Intermediary Procurer/ End Procurer and the Authorised Representative of the Procurer and the
same needs to be str ictly followed for such bidding to be eligible under section 63 of the Electricity Act.
However, in case it becomes imperative to deviate from the provisions of these Guidelines, the process to be
adopted is specified in Clause 16 of these Guidelines.
2.4. Principles outlined in these Guidelines may be suitably expanded and made exhaustive in the Standard
Bidding Documents [consisting of Model Request for Selection (RfS) Document, Model Power Purchase
Agreement and Model Power Sale Agreement].
3. PREPARATION FOR I NVITING BID AND PROJECT PREPAREDNESS
3.1. Conditions to be met by the Procurer
The Procurer shall meet the following conditions:
3.1.1. Bid Documentation
(a). Prepare the bid documents in accordance with these Guidelines.
(b). Seek approval of the Government for deviations, if any, in the draft RfS, draft PPA, draft PSA (if
applicable) from these Guidelines and/ or SBDs, in accordance with the process described in Clause
16 of these Guidelines.
However, for purpose of clarity, if the Procurer while preparing the draft RfS, dra ft PPA, draft PSA and
other Project agreements provides detailed provisions that are consistent with the Guidelines, such
detailing will not be considered as deviations from these Guidelines even though such details are not
provided in the Guidelines.
3.2. Arra ngements related to Commencement of Supply
The RfS may specify additional milestones for the project with respect to land acquisition, connectivity etc.
as well as regular reporting requirements by the Generator and shall specify penalties with respect to non-
compliance with such milestones/requirements. Obtaining all clearances, permits, licenses including
arrangement of land and connectivity to the Grid and access (if applicable) prior to scheduled date of
commencement of supply of power shall be the resp onsibility of the Generator and the Procurer shall not be
responsible in case of delay in obtaining such clearances, permits, licenses etc.
4. TARIFF
4.1. A single tariff for supply of Solar power shall be quoted by the bidders (the “ Tariff ”).
4.2. The Tariff shall be quoted at the Delivery Point which shall be at the CTU/STU interconnection point. All
charges and losses till the delivery point shall be borne by the Generator.
5. BID STRUCTURE
5.1. Bids in Power Terms: The Procurer shall invite the bids in Power Capacity (MW) terms, specifying the total
quantum to be contracted by the procurer. Procurer may specify minimum off -take in terms of annual energy
in the RfS.
5.2. A bidder can quote for a part of the total quantum to be procured by the procurer. The minimum quantum of
powe r that can be offered by the bidder should be 50MW for the projects connected to inter -state
transmission system. In case of STU -connected Projects, minimum bid quantum may be specified as 10 MW.
Notwithstanding this, on due consideration of availability o f land and transmission facility, smaller minimum
quantum of power that can be offered by a bidder can be kept in case of North -Eastern States, Special
Category States and Projects outside RE Parks and STU Connected Projects, but this should be clearly
provided for beforehand in the RfS.
5.3. A maximum of 50 percent of total capacity as specified in the RfS can be allocated to a single bidder.
5.4. Tariff as the Bidding Parameter: The bidding evaluation parameter shall be the tariff per unit supply of
solar power, fi xed for the entire term of the PPA. The Procurer shall invite bids wherein the bidder shall
quote the Tariff in Rs./kWh. The bidder shall be selected on the basis of least quoted Tariff. Subsequent to
the e -reverse auction, the bidder (called the L1 bidder ) quoting the least Tariff (called the L1 tariff) shall be
allocated the quantum of power offered by him. The capacity allocation shall be on the basis of Bucket filling
i.e. capacity quoted by L1 bidder at L1 rates shall be allocated first, then the capac ity quoted by the next
lowest bidder (called the L2 bidder) at the rates quoted by him (called the L2 rates) may be allocated and so
on.
However, the allocation will only be made to the bidders whose bid falls within a pre -defined “Range” from
the L1 tari ff, as stipulated in the RfS. Thus, after arranging the bidders in the ascending order of tariff, the
Project capacities will be awarded only to those bidders whose final price bids are within a range of
“L1+x%”, in terms of INR/kWh; while the value of “x” generally be two (2) to five (5) and shall be fixed in
the RfS.
5.5. Bid submission and evaluation:
(a). Formation of consortium by the bidders shall be permitted, in which case the consortium shall identify a lead
member which shall be the contact point for all co rrespondences during the bidding process. The Procurer
may specify technical and financial criteria, and lock in requirements for the lead member of the consortium.
(b). The Procurer shall constitute a committee for evaluation of the bids (Evaluation Committee ), with at least
three members, including at least one member with expertise in financial matters / bid evaluation.
(c). The bidders shall be required to submit separate technical and price bids. The bidders shall also be required
to furnish necessary bid -guara ntee in the form of an Earnest Money Deposit (EMD) along with the bids.
(d). The technical bids shall be evaluated to ensure that the bids submitted meet the eligibility criteria set out in
the RfS document on all evaluation parameters. Only the bids that meet the evaluation criteria set out in the
RfS document shall be considered for further evaluation on the price bids.
(e). To ensure competitiveness, the minimum number of qualified bidders should be two. If the number of
qualified bidders is less than two, even af ter three attempts of bidding, and the Procurer still wants to
continue with the bidding process, the same may be done with the consent of the Appropriate Commission.
(f). The price bid shall be rejected, if it contains any deviation from the tender conditions. No clarifications shall
normally be requested from bidders at price bid stage.
(g). The detailed procedure for evaluation of the bid and selection of the bidder shall be provided for in the RfS
document.
6. POWER PURCHASE AGREEMENT
The draft PPA proposed to be en tered into with the successful bidder and draft PSA (if applicable) shall be
issued along with the RfS. Standard provisions to be incorporated as part of this PPA shall include inter alia
the following. These provisions may be supplemented and unless other wise specified herein, shall be
provided for, on a back -to-back basis in the PSA:
6.1. PPA Period: The PPA period shall generally be for a period of 20 (twenty) years from the Scheduled
Commencement -of-Supply Date (SCSD) or from the rescheduled date of commence ment of supply to the
extent of extension given by the Procurer on the grounds which are beyond control of the Generator. The
PPA may, however, also be fixed for a longer period such as 25 (twenty -five) years. The duration of the PPA
must be mentioned upfr ont in the RfS document. The developers shall be free to operate their plants after the
expiry of the PPA period. The developer may upgrade and repower their plants during the PPA period at its
own risk and cost; and participate in subsequent bids to the e xtent of their untied capacity.
6.2. Power Procurement
(a). The procurement of power -shall be in power (MW) terms. The range of Capacity Utilisation Factor (CUF)
will be indicated in the bidding documents. Calculation of CUF will be on yearly basis.
(b). In case the project supplies energy less than the energy corresponding to the minimum CUF, the SPG will be
liable to pay to the Procurer, penalty for the shortfall in availability of energy. The amount of such penalty
will be equal to one and a half times the PPA tari ff for the shortfall in energy terms, in accordance with the
terms of the PPA
(c). In case the energy available is more than the quantum corresponding to maximum CUF specified, the
Solar Power Generator will be free to sell it to any other entity provided first righ to frefusal will vest with
the Procurer(s). In case the Procurer purchases the excess generation,the same may be do neat the PP A tariff,
and provision to this effect shall be clearly indicated in the RfS document.
(d). In order to allow optimization of o peration of RE, the Generator is allowed to supply power from the RE
power plant in excess of contracted capacity, to any third party or power exchange without requiring any No -
Objection Certificate (NOC) from the Procurer. The Generator may also sell the power which was offered on
day ahead basis to the Procurer (within Contracted Capacity) but not scheduled by the Procurer, to any third
party or in power exchange without requiring NOC from the Procurer.
(e). Developers who have already commissioned Solar PV pl ants or are in process of constructing such plants and
have untied capacity may also participate in the bid. In such case, they may be given the benefit of a longer
period of PPA, commensurate to the duration between the actual date of commencement of supp ly of power
and SCSD.
(f). The scheduling and its punching thereof at different Regional Load Despatch Centres (RLDCs) / State Load
Despatch Centres (SLDCs) (including the injecting, intervening and buyer SLDCs/ RLDCs) shall be the
responsibility of Generator only.
(g). Deviation Settlement Mechanism (DSM): For deviations from schedule, the DSM (Deviation Settlement
Mechanism) shall be applicable as per the prevailing regulations. The DSM charges at the generator end shall
be settled by the Solar Power Generator.
6.3. Payment Security Mechanism (PSM)
Adequate payment security shall be provided as per Electricity (Late Payment Surcharge and Related
Matters) Rules, 2022 including amendments and clarification, if any, thereof, issued from time to time. In
addition, the Inter mediary Procurer may maintain a payment security fund. To be eligible for coverage from
the fund, the developer will undertake to pay PSM charges at the rate of 2 paise per unit.
6.4. Force Majeure
6.4.1. The PPA shall contain provisions with regard to Force Majeure d efinitions, exclusions, applicability and
available relief on account of force majeure as per the Industry Standards. The Generator shall intimate the
procurer about the occurrence of force majeure within 15 (fifteen) days of the start of the force majeure and
the Procurer shall respond on his claim within 15 days of the receipt of the intimation.
6.5. Generation Compensation for off -take Constraints: Where the procurer does not schedule power on
account of unavailability of the Transmission Infrastructure or a ny other eventuality, the penalty will be in
accordance with the Electricity (Promotion of Generation of Electricity from Must -Run Power Plant) Rules,
2021, as amended from time to time.
6.5.1. Generation Compensation in off take constraints due to Grid Unavaila bility: During the operation of the
plant, there can be some periods where the plant can generate power but due to temporary transmission
unavailability the power is not evacuated, for reasons not attributable to the Generator. In such cases the
generation compensation shall be addressed by the Procurer in following manner:
Duration of Grid unavailability Provision for Generation Compensation
Grid unavailability beyond 175 hours
in a year, as defined in the PPA Generation Compensation =
((Tariff X Solar p ower (MW) offered but not scheduled by Procurer)) X
1000 X No. of hours of grid unavailability.
However, in case of third -party sale or sale in the power exchange, as price
taker, the 95% of the amount realised, after deducting expenses, shall be
adjusted against the Generation compensation payable, on monthly basis.
6.5.2. Payment in case of reduced offtake: The Generator and the Procurer shall follow the forecasting and
scheduling process as per the regulations in this regard by the Appropriate Commission. In case the plant is
available to supply power but the off take of power is not done by the Procurer, including non -dispatch of
power due to non -compliance with “Electricity (Late Payment Surcharge and Related Matters) Rules, 2022
notified by the Ministry of Power vide Gazette notification dated 3rd June 2022” and any clarifications or
amendment thereto, considering the principle of ‘must run’ status for RE Power, the procurer shall pay to the
Generator, corresponding to the reduced off take, in terms of follo wing manner:
Reduced Off -take Provision for Generation Compensation
Reduced off -take
beyond 175 hours
in a year, as
defined in the PPA Generation Compensation =
(Tariff x Solar PV power (MW) offered but not scheduled by Procurer) X 1000 X
No. of hours o f Reduced Offtake
However, in case of third -party sale or sale in the power exchange, as price
taker, the 95% of the amount realised, after deducting expenses, shall be
adjusted against the Generation compensation payable, on monthly basis.
6.5.3. For claiming compensation, the generator must sell their power in the power exchange as a price taker. Thus,
the compensation would be limited to the difference of the actual generation up to declared capacity subject
to a maximum up to the contracted capacity and the quantum of power scheduled by the procurer.
6.6. Event of default
(a). For delay in commencement of supply of power beyond six months from SCSD, the generator event of
default shall be construed to have occurred and consequences shall be in accordance with Clause 13.3.
(b). In the event the Generator fails to maintain energy supply corresponding to the minimum CUF as declared in
the PPA, the Generator shall be in default and the PPA shall be liable to be terminated. Further, the Generator
shall be liable to pay to the P rocurer, damages, equivalent to 24 (twenty -four) months, or balance PPA period
whichever is less, of tariff for its contracted capacity with the stipulated minimum CUF.
(c). In the event that the Generator assigns or novates any of its rights or obligations con trary to the terms of the
PPA, or repudiates the PPA, or commits any other acts or omissions as laid down in the PPA and is also
unable to cure any of the aforesaid within the cure period, as may be provided in the PPA, the Generator shall
pay to the Procu rer, damages, equivalent to 24 (twenty four) months, or balance PPA period whichever is
less, of tariff for its contracted capacity with the stipulated minimum CUF. The Procurer shall have the right
to recover the said damages by way of forfeiture of bank guarantee, if any, without prejudice to resorting to
any other legal course or remedy.
(d). In addition to the levy of damages as aforesaid, in the event of a default by the Generator, the lenders shall be
entitled to exercise their rights of substitution, in a ccordance with the substitution provisions provided in the
PPA and in concurrence with the Procurers. However, in the event the lenders are unable to substitute the
defaulting Generator within the stipulated period, the Procurer may terminate the PPA.
(e). If the Procurer/Intermediary procurer is in default on account of reasons including inter alia failure in timely
payment of the dues, in accordance with the RfS or repudiation of the PPA, the Generator may terminate the
PPA and at its discretion. The defaultin g Procurer shall pay to the Generator, damages, equivalent to 24
(twenty -four) months, or balance PPA period whichever is less, of charges for its contracted capacity with the
stipulated minimum CUF.
6.7. CHANGE IN LAW/ REGULATION
The provisions for Change in L aw shall be in accordance with the Electricity (Timely Recovery of Costs due
to Change in Law) Rules, 2021 notified by Ministry of Power vide notification dated 22nd October 2021
including amendments and clarification thereof issued from time to time.
7. BIDD ING PROCESS
7.1. The Procurer/intermediate procurer shall call for the bids adopting a single stage, two part (Technical Bid &
Financial Bid), bidding process to be conducted through electronic mode (e -bidding). The technical bid shall
be opened first. The fina ncial bids of only those bidders who qualify in the technical bid shall be opened. E -
procurement platforms with a successful track record and with adequate safety, security and confidentiality
features will be used.
7.2. The Procurer shall invite the Generator s to participate in the RfS for installation of Solar PV Power Plants
and supply of Solar Power with or without Energy Storage System, in terms of these Guidelines.
7.3. Developers who have already set up capacity or who have spare untied capacity may also part icipate in the
bid.
7.4. The bidding documents including the RfS and the draft PPA shall be prepared by the Procurer in consonance
with these Guidelines and the SBDs, if any.
7.5. The Procurer shall publish the RfS notice in at least two national newspapers and its own website to accord
wide publicity.
7.6. The Procurer shall provide opportunity for pre -bid conference to the prospective bidders and shall provide
written interpretation of the tender documents to any bidder which shall also be made available to all other
bidders. All the concerned parties shall rely solely on written communication. Any clarification or revision to
the bidding documents shall be uploaded on the website of the Procurer for adequate information. In the
event of the issuance of any revision or amendment of the bidding documents, the bidders shall be provided a
period of at least 7 (days) therefrom, for submission of bids.
8. REQUEST FOR SELECTION (RFS) DOCUMENT
The standard provisions to be provided by the Procurer in the RfS document shall include the following and may be
suitably expanded:
8.1. Bid Responsiveness
The bid shall be evaluated only if it is responsive and satisfies conditions including inter -alia
(a). Bidder or any of its Affiliates is not a wilful defaulter to any lender.
(b). The Bidder & any of its Affiliate including any Consortium Member & any of its Affiliate, their directors
should not have been barred or included in the blacklist by any Government Agency or Authority in India,
the Government of the jurisdiction of the Bidder or Members wher e they are incorporated or the jurisdiction
of their principal place of business, any international financial institution such as the World Bank Group,
Asian Development Bank, African Development Bank, Inter -American Development Bank, Asian
Infrastructure Investment Bank etc or the United Nations or any of its agencies.
8.2. Qualification requirements to be met by the bidders
8.2.1. Technical Criteria
The Government would like to encourage competition by way increased participation. However, in order to
ensure proper i mplementation of the Projects, the Procurer may choose to specify Technical Criteria. Such
criteria should be set after an assessment of the number of project developers that are expected to meet the
criteria so that an adequate level of competition is ach ieved.
8.2.2. Financial Criteria
(a). Net worth
(i). The Procurer shall specify financial criteria in the form of net worth as a part of the qualification
requirement. The net -worth requirement should be at least 20% (twenty per cent) of the estimated
Project cost or any o ther criteria specified in the RfS.
(ii). The net worth to be considered for the above purpose will be the cumulative net -worth of the bidding
company or consortium, together with the net -worth of those Affiliates of the bidder(s) that undertake
to contribute t he required equity funding and performance bank guarantees in case the bidder(s) fail to
do so in accordance with the RfS document.
(iii). It is clarified that the net -worth to be considered for this clause will be the total net -worth as calculated
in accordance with the Companies Act.
(b). Liquidity
It is necessary that the bidder has sufficient cash flow/ internal accruals to manage the fund requirements for
the Project. Accordingly, the Procurer may also stipulate suitable parameters such as annual turnover,
intern al resource generation, bidding capacity, etc.
8.3. Quantum of the Earnest Money Deposit (EMD)
Procurer shall specify the Quantum of the Earnest Money Deposit (EMD), which shall not be less than two
(2) percent of the estimated capital cost of the Project or a ny other criteria specified in the RfS, in the form of
a bank guarantee/ letter of undertaking to pay/, to be furnished by the bidders. Forfeiture of EMD or
debarring etc., as defined in these Guidelines, shall be undertaken in the event of failure of the Generator to
execute the PPA within the stipulated time period.
8.4. Compliance of FDI Laws by foreign bidders
In case a Foreign Company is selected as the successful bidder, it shall comply with all the laws and
provisions related to Foreign Direct Investment in India.
9. INDICATIVE TIMETABLE FOR BID PROCESS
9.1. In the bidding process, a minimum period of 22 (twenty -two) days shall be allowed between the issuance of
RfS document and the last date of bid submission. The indicative timetable for the bidding process is
indicated below:
Indicative Timetable for Bid Process
Sl.
No. Event Elapsed Time from Zero date
1. Date of issue of Request for Selection (RfS) document, Project specific draft
Power Purchase Agreements and other draft Project Agreements, and the
Power Sa le Agreement (PSA), if applicable. Zero date
2. Bid clarification, conferences, opening of online Data Room to share all
Project specific details including site, if specified by Procurer etc. & revision
of RfS document **
3. RfS Bid submission 22 days
4. Evaluation of technical bids 64 days
5. Evaluation of financial bids and conduction of e -Reverse Auction 99 days
6. Issuance of Letter of Award (LoA) 110 days
7. Signing of PPA & PSA (if applicable) 140 days
** In case of any change in RfS document, the Procurer shall provide the bidders additional time in
accordance with Clause 7.5 of these Guidelines.
Note: It is clarified that if the Procurer gives extended time for any of the events in the bidding process, on
account of delay in achieving the acti vities required to be completed before the event, or any other reason,
such extension of time shall not in any way be construed as deviation from these Guidelines.
9.2. In normal circumstances, the bidding process is likely to be completed in a period of 110 ( one hundred ten)
days.
10. CONTRACT AWARD AND CONCLUSION
10.1. The PPA shall be signed with the successful bidder/ project company or an SPV formed by the successful
bidder.
10.2. The procurer shall constitute a committee for evaluation of the RfS bids. After the conclu sion of bidding
process, the Evaluation Committee constituted for evaluation of RfS bids shall critically evaluate the bids and
certify as appropriate that the bidding process and the evaluation has been conducted in conformity to the
provisions of the RfS document. The evaluation authority should satisfy itself that the price of the selected
offer is reasonable and consistent with the requirement . The evaluation committee shall have the right to
reject all price bids if the rates quoted are not aligned to the prevailing market prices.
10.3. For the purpose of transparency, the Procurer shall, after the execution of the PPA, publicly disclose the
name(s) of the successful bidder(s) and the tariff quoted by them together with breakup into components, if
any. The p ublic disclosure shall be made by posting the requisite details on the website of the Procurer for at
least 30 (thirty) days.
10.4. Subject to provisions of the Act, the distribution licensee or the Intermediary Procurer, as the case may be,
shall approach the A ppropriate Commission for adoption of tariffs discovered, in terms of Section 63 of the
Act, within 15 (fifteen) days of the discovery of the tariffs through e -reverse auction or otherwise, in the
transparent competitive bidding process conducted in accord ance with these Guidelines.
10.5. Subsequent to the distribution licensee or Intermediary Procurer, as the case may be, approaching the
Appropriate Commission for adoption of tariffs under Section 63 of the Act, in case, the Appropriate
Commission does not deci de upon the same within 60 (sixty) days of such submission or within 120 (one
hundred and twenty) days from the date of Power Sale Agreement (PSA), whichever is more, the Procurer(s)
shall grant appropriate extension of time in SCSD to the generators, corr esponding to the delay [beyond 60
(sixty) days of submission or 120 (one hundred and twenty) days of PSA, whichever is more] in adoption/
approval by the Appropriate Commission, till the date of adoption/ approval by the Appropriate Commission.
11. BANK GUARAN TEES/ PAYMENT ON ORDER INSTRUMENTS/ LETTERS OF UNDERTAKING
The Generator shall provide the following bank guarantees/ letters of undertaking to pay to the Procurer in
terms of the RfS
11.1. Earnest Money Deposit (EMD) as per Clause 8.3 to be submitted along with response to RfS, in the form
of:
(a). Bank Guarantee(s);
OR
(b). "Payment on Order instrument" / Letter of Undertaking, to pay in case of default of the RE Power Generator
in terms of RfS, from Indian Renewable Energy Development Agency (IREDA)/ Power Finance Corpo ration
Limited (PFC)/ REC Limited (REC).
"Payment on Order instrument " means Letter of Undertaking from Indian Renewable Energy
Development Agency Limited (IREDA) or Power Finance Corporation Limited (PFC) or REC Limited
(REC) [the three non -banking financ ial institutions under Ministry of New & Renewable Energy (MNRE)/
Ministry of Power (MoP)], to pay in case situation of default of generator in terms of tender
conditions/Power Purchase Agreement (PPA) arises. Such Letter(s) will have same effect as that o f a
Bank Guarantee issued by any public sector bank. Such "Payment on Order instrument" would have
terms and conditions similar to that of any Bank Guarantee given by any public sector bank and would
promise to pay the Procurer on demand within stipulated time. Generators can seek such Letters(s) by
offering due security to the above mentioned three non -banking financial institutions mentioned above
(IREDA, PFC & REC). Procurer(s) shall not accept the instrument of 'Letter of Undertaking' as
described above or in any other form, from any other non -banking financial institutions or bank, except
IREDA, PFC & REC.
11.2. Performance Guarantee (PBG), to be fixed by the Procurer, but not to be less than 5% (five percent), of the
estimated Project cost, for the financial year in which the bids are invited, or any other criteria specified in
the RfS, to be submitted at the time of signing of the PPA, in the form of:
(a). Bank Guarantee(s);
OR
(b). "Payment on Order instrument" / Letter of Undertaking to pay in case of default of SPG in terms of Power
Purchase Agreement (PPA), from Indian Renewable Energy Development Agency (IREDA)/ Power Finance
Corporation Limited (PFC) and REC Limited (REC);
11.3. In addition to the other remedies, this PBG (or alternatives provided thereto as per these Guidelines) can be
encashed to recover any damages/dues of the generator in terms of the PPA. It is hereby clarified that the
damages/dues recovered by the Intermediary Procurer by encashing the PBG, upon the default of the
generator under the PPA, shall be credited to the Payment Security Fund to be maintained by the
Intermediary Procurer under Clause 6.3 of these Guidelines. PBG (or alternatives provided thereto as per
these Guidelines) shall be returned to the generator within 45 days of the SCSD of the project. In case of part
commencement of supply of power, PBG corresponding to such part capacity, should be released within 45
days.
11.4. Procurer(s) may release the Bank Guarantees submitted by a generator as ‘Performance Bank Guarantee
(PBG)’, if the gener ator is able to replace the same with "Payment on Order instrument" / Letter(s) of
Undertaking to pay in case situation of default of generator in terms of Power Purchase Agreement (PPA)
arises, from Indian Renewable Energy Development Agency Limited (IRED A) or Power Finance
Corporation Limited (PFC) or REC Limited (REC).Generators can seek such Letters(s) by offering due
security to the above mentioned three nonbanking financial institutions (IREDA, PFC & REC) for seeking
replacement of their Bank Guarante es already pledged with the implementing agencies.
12. SHAREHOLDING BY THE PROMOTER
12.1. The successful bidder, if being a single company, shall ensure that its shareholding in the SPV/project
company executing the PPA shall not fall below 51% (fifty -one per cent) at any time prior to 1 (one) year
from the SCSD except with the prior approval of the Procurer. In the event the successful bidder is a
consortium, then the combined shareholding of the consortium members in the SPV/project company
executing the PPA, shal l not fall below 51% at any time prior to 1 (one) year from the SCSD, except with the
prior approval of the Procurer. Further, the successful bidder shall ensure that its promoters shall not cede
control2 of the bidding company/ consortium till 1 (one) yea r from the SCSD, except with the prior approval
of the Procurer. In this case it shall also be essential that the successful bidder shall provide the information
about its promoters and their shareholding to the Procurer before signing of the PPA with Proc urer.
12.2. Any change in the shareholding after the expiry of 1 (one) year from the SCSD can be undertaken under
intimation to Procurer.
12.3. In the event the Generator is in default to the lender(s), lenders shall be entitled to undertake “Substitution of
Promote r” in concurrence with the Procurers.
[2The expression ‘control’ shall mean the ownership, directly or indirectly, of more than 50% (fifty per cent)
of the voting shares of such Company or right to appoint majority Directors.]
13. COMMENCEMENT OF SUPPLY OF POW ER
13.1. The Power Purchase Agreement between the RE Project and Procurer/Intermediate procurer shall clearly
indicate the SCSD and quantum of supply.
13.2. Commencement of Supply Schedule
(a). The Developer / Solar Power Generator shall generally commence supply of power, within a period of:
(i). 24 (twenty -four) months from the date of execution of the Power Purchase Agreement, where the
quantum allotted to the Developer / Solar Power Generator is not more than 1000 MW;
(ii). 30 (thirty) months from the date of execution of the Powe r Purchase Agreement, where the quantum
allotted to the Developer / Solar Power Generator is more than 1000 MW.
(b). However, if for some reason, the SCSD period needs to be kept shorter or longer than that provided in these
Guidelines, the Procurer can do the same.
(c). It is presumed that in terms of Clause 10.5 of these Guidelines, the tariff will be adopted by the Appropriate
Commission within 60 days of such submission or within 120 days from the date of Power Sale Agreement
(PSA), whichever is more. However, n otwithstanding anything contained in these Guidelines, any delay in
adoption of tariff by the Appropriate Commission, beyond 60 days of submission or 120 days from of PSA,
whichever is more, shall entail a corresponding extension in SCSD.
13.3. Delay in Commence ment of Supply of Power
Delay in commencement of supply of power, beyond the SCSD shall involve penalties on the Generator, as detailed
below:
(a). For delay in commencement of supply of power up to 6 (six) months from SCSD, encashment of
Performance Bank Guar antee (PBG), or alternate instruments, on per -day basis and proportionate to the
contracted capacity that has not commenced supply of power.
(b). For delay in commencement of supply of power beyond six months from SCSD, the following shall be
applicable: -
(i). The c ontracted capacity shall stand reduced to the project capacity that has commenced supply of
power within the period of SCSD plus 6 (six) months. The PPA for the balance contracted capacity
that has not commenced supply of power shall stand terminated.
(ii). The Generator shall be debarred from participating in bids issued by any Procurer or any
Intermediary Procurer for the following period:
a. For one year in case of first default
b. For not less than 2 years and not more than 3 years for second and any subsequent def aults.
13.4. Part Commencement of Supply of Power
Part Commencement of Supply of Power of the Project shall be accepted by the Procurer subject to the
condition that the Minimum Capacity for acceptance of first and subsequent part(s) shall be 50 MW (with the
last part being the balance Contracted Capacity), without prejudice to the imposition of penalty, in terms of
the PPA on the part which has not yet commenced supply of power. Minimum part -capacities in case of
STU -connected Projects may be specified in the bi dding documents. However, the SCSD will not get altered
due to part -commencement of supply of power. Irrespective of dates of part or full commencement of supply
of power, the PPA will remain in force for the period specified in the bid.
13.5. Early Commencement of Supply of Power
The Solar Power Generator shall be permitted for commencement of supply of power corresponding to full as
well as part contracted capacity, even prior to the SCSD. The Generator will be allowed to commence supply
of power from the Proje ct, with first right of refusal for such power being vested with the End Procurer.
Subsequent to refusal of such power by the End Procurer, the right of refusal shall vest with the Intermediary
Procurer. If the Procurer/Intermediary Procurer decides to off -take power in this case, such power shall be
purchased at the PPA tariff for the applicable contract year and specific provisions in this regard will be
stipulated in the tender documents.
14. TRANSMISSION CONNECTIVITY
14.1. The responsibility of getting Transmiss ion Connectivity will lie with the Generator and shall be at the cost of
Generator.
14.2. The Metering Point, which is the point at which energy supplied to the Procurer shall be measured, shall be
the low voltage side of the CTU/STU substation. In case of RE pa rks, the metering point is the ISTS/In -STS
pooling station with which the internal transmission from all the pooling substations is connected. All
expenses including wheeling charges and losses between the Project and the Metering Point shall be paid by
the Generators without any reimbursement by the Procurer. All expenses including wheeling charges and
losses in relation to the transmission and distribution beyond the Metering Point shall be borne by the
Procurers as per the regulation notified by the Comm ission from time to time.
15. TECHNICAL SPECIFICATIONS
Procurers shall promote commercially established and operational technologies to minimize the technology risk and to
achieve the timely commencement of supply from the Projects. The detailed technical para meters for Solar PV/Energy
Storage Systems, shall be as specified by MNRE from time to time.
16. DEVIATION FROM PROCESS DEFINED IN THE GUIDELINES
The objective of these Guidelines is to bring standardization & uniformity in processes so that there is fairness &
transparency in procurement. As such, these Guidelines need to be strictly followed in the bidding process and no bid,
under section 63 of the Electricity Act, for procurement of Solar power from the Projects with or without Energy
Storage System shall be issued in contravention to these Guidelines. However, in case it becomes imperative for the
Procurer to deviate from these Guidelines and/or the SBDs, the same shall be subject to approval by the Appropriate
Government before the initiation of bidding p rocess itself. The Appropriate Government shall approve or require
modification to the bid documents within a reasonable time not exceeding 60 (sixty) days of filing such petition.
17. DISPUTE RESOLUTION
In the event, CERC is the Appropriate Commission, any d ispute that arises claiming any change in or regarding
determination of the tariff or any tariff related matters, or which partly or wholly could result in change in tariff, such
dispute shall be adjudicated by the CERC. All other disputes shall be resolve d by the Dispute Resolution Committee
set up by the Government, failing which by arbitration under the Indian Arbitration and Conciliation Act, 1996. In the
event SERC/JERC is the Appropriate Commission, then all disputes shall be adjudicated by the SERC/J ERC or shall
be referred for arbitration by the SERC/JERC.
18. CLARIFICATION AND MODIFICATION TO GUIDELINES
If any difficulty arises in giving effect to any provision of these Guidelines or interpretation of the Guidelines or
modification to the Guidelines, Mi nistry of Power is empowered to do the same in consultation with Ministry of New
& Renewable Energy.
19. RENEWABLE PURCHASE / ENERGY STORAGE OBLIGATION
The Solar power [including Energy Storage System (ESS) component charged with solar power] bought under th ese
Guidelines shall be eligible for RPO compliance. The ESS capacity used in the project can be used for fulfilling the
Energy Storage Obligations as per the Government of India’s orders or notifications.
20. ISTS CHARGES AND LOSSES
ISTS charges and losses o n transmission of power, including waiver for RE power, shall be as per extant rules and
regulations.
HEMANT KUMAR PANDEY, Chief Engineer
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