Bidding Strategy for JNNSM Phase 1 Batch 2

Posted on August 29, 2011 by


Solar PV_Jawaharlal Nehru National Solar Mission _Phase 1_Batch 2 MNRE has issued guidelines for selection of new grid connected solar power projects under Phase I Batch II of the JNNSM program. The new guidelines have made it attractive for developers who are serious about solar power.

Highlights

  • Maximum project capacity has been increased to 20 MW from 5 MW
  • Min project capacity remains 5 MW
  • Total capacity of solar PV projects to be allocated to company including its parent or any group company shall be 50 MW
  • Allocations to be made for 350 MW

While this may ensure that only financially sound and serious players enter the fray, the increase in project capacity may hamper the growth of developer base.

Why engage a specialist?

  • Technology selection is not a trivial act

The scenario in PV technologies today is a complex one, having evolved dramatically in last couple of years. Few years back, crystalline silicon was the only option available. Today, a number of options are available. Many of these have reached significant levels of commercialization at utility scale across a number of geographies. Right selection of technology weighing the pros and cons of each will go a long way in feasible project. Matching the technology to the location is essential as well, given the fact that irradiation patterns are different in say Rajasthan versus Maharashtra.

  • Understanding at plant level and not component level

The cost breakup of the components of a solar PV power plant is 60-70% in the modules and panels, 20-25% in the conversion or power electronics and 20-25% in the evacuation system. A number of players in the market bring domain expertise in one of the three areas – either the modules and panels side or the power electronics. Similar to the panels and modules, there are many options in the power electronics as well. There are at least 10 leading brands of inverter available in the market today. All of them come with significantly different configuration, losses and therefore performance. Also, a key thing to remember when designing the plant as a system is that the best stand-alone component may not be the optimum component for the system. The plant needs to be designed with the objective of minimizing losses and not from perspective of assembling best components.

  • Hands on experience

As described above, while it is a technically evolved play, a significant level of learning has also accumulated with people who have undergone through the process of designing the power plant, undertaking the bid process and managing the commissioning of power plant. In the pressure of managing commissioning of multiple power plants to meet the deadlines the EPCs may not be able to keep up to the technical specifications. Even with the EPCs managing the show to best of their capabilities, it is essential for the investors to get an assurance on getting the most optimum of services and products from EPCs.

  • Project management

One of the make-or-break parameter in the program is the timeline of commissioning of the plants to ensure that the bank guarantees are not seized. There are a number of parties and complexities involved in the project management of the solar PV power plant commissioning. A simple illustration will make this point clear. The EPC players are typically the foreign technology players working in collaboration with the Indian EPC counterparts. These Indian EPC partners rely on a number of local (state or region specific) partners to undertake execution of on the ground activities such as foundation and the fabrication of structures. With more people and timelines and activities to manage, project management of solar PV plant commissioning becomes complex with a non-negotiable deadline.

  • Quality Services

An aspect that gets ignored in the technicalities and in the effort to keep up with the deadlines is the quality of implementation of the project. A solar power plant brings together a number of engineering disciplines such as electrical, electronics and civil engineering. A breadth of expertise across all of these is needed to ensure that all the activities such as the soil survey, foundation and civil work are done systematically to minimize the losses. An ability to reduce the losses even by a few percentage points has significant impact on the project profile given the 25 year lifetime of the plant.

We can

Agneya’s associate has been involved in concept to commissioning of utility scale solar PV power plants across Jharkhand, Maharashtra, Rajasthan and West Bengal. We bring to table the experience of association with solar PV projects at Asansol, Chandrapur and our association with MNRE. We have used our experience across the technical, quality and project management spectrum to ensure that optimized design and investment decision is enabled for the investor for investments in earlier batch of JNNSM Phase I.

For further discussion – contact us at kedar[at]Agneya[dot]in

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Posted in: Renewable Energy