INVITATION FOR EXPRESSION OF INTEREST (EOI):

Procurement of Energy Shifting Solution of 400 MW

and 8 hours of discharge per day (3,200 MWh) on
long term basis for energy supply from Q3 FY 2021- Last Date of Bid
22 for Peak Load Management Submission:
25thFebruary,
2019, at
11:00AM.
EoI Specification No.ESS.02/2019, dated:12.02.2019

Chief Engineer (IPC & PS)

Transmission Corporation of Andhra Pradesh Limited,
VidyutSoudha,
Gunadala, Eluru Rd,
Vijayawada, Andhra Pradesh 520004
 Table of Contents
1 Background ............................................................................................................................................................1
2 Invitation for Expression of Interest (EoI)..............................................................................................3
3 Technical Specifications ...................................................................................................................................3
4 Eligibility Criteria ................................................................................................................................................4
5 Project Preparedness ........................................................................................................................................4
6 Evaluation Criteria..............................................................................................................................................5
7 Terms and Conditions .......................................................................................................................................6
8 Timelines .................................................................................................................................................................7
9 List of Documents to be Submitted.............................................................................................................7
10 Contact Details.....................................................................................................................................................8
11 ANNEXURE I: FORMAT FOR LETTER OF RESPONSE .......................................................................9
12 ANNEXURE II: PROFILE OF THE APPLICANT ................................................................................... 11
13 ANNEXURE III: DETAILS OF THE PROPOSED STORAGE PLANT ............................................. 13
14 ANNEXURE IV: EVALUATION PARAMETERS .................................................................................... 14
15 ANNEXURE V: COMMISSIONING CERTIFICATE............................................................................... 15
1 Background

APDISCOMs require peak power during mornings and evenings, across the year. Peak
power requirement can be partly met by wind for 2-3 months, during the months of June to
August. During other parts of the year, peak power requirement is mostly met through
purchases from IEX. Power Purchase from IEX during the peak hours mostly increases the
power purchase cost of APDISCOMs. Peak Power requirement can be met by planning a
thermal plant but it would be inefficient as the plant will have lower utilization.

The challenge of peak load management can be addressed through an energy storage
solution. CERC Staff Paper on ‘Introduction of Electricity Storage System in India’ (Jan-
2017) emphasizes the need of energy storage and its benefits.

“In the coming decade, the need for modernizing the grid will help the nation to meet
the challenge of handling projected energy needs as well as increasing energy from
renewable sources while maintaining a robust and resilient electricity delivery system.
These challenges warrant a specific energy storage solution to cater to peak demand
and to address the variability of intermittent generation. In this context, need is felt for
specific Electricity Storage System (“the ESS”) that would provide economically
feasible Electricity Storage Services to address these challenges. Energy storage can
play a significant role in meeting these challenges by improving the operating
capabilities of the grid, lowering power purchase cost and ensuring high reliability by
maintaining unscheduled interchange as well as deferring and reducing infrastructure
investments in new projects.”

Energy Shifting Solution is defined as a storage solution which shifts energy from one
time to anotherfor peak load management during the day time.

APTRANSCO as a state transmission utility and SLDC as a system operator are

planning to procure energy shifting solution with a capacity of 400 MW with 8 hours
of daily discharge (3200 MWh) for peak load management.

Energy shifting solution shall be able to discharge continuously for atleast 3 hours. (3 hours
of continuous discharge during morning & evening peak hours and 2 hours of discharge as
required during the day).

APTRANSCO has already indicated its plan to procure energy storage system in Multi-year
Tariff filings for 4thControl Period (FY 2019-20 to FY 2023-24) with Honourable APERC.

APTRANSCO plans to set-up energy shifting solution by paying fixed annual charges to the
developer. On account of scale, energy shifting solution at centralized location would be a
cost effective solution.

1
In addition to peak load management, Energy Storage System as part of transmission
system has additional benefits such as;

a. RE Integration &Intermittency control

b. Frequency & Voltage Control

c. Deviation Control

Energy shifting solution can be of any technology such as battery storage, pump storage,
compressed air energy storage, flywheels, super-capacitors, molten salt technology or any
other storage technology that can cater to centralized grid-scale storage requirement.

It is envisaged to procure energy shifting solution by entering into long term

agreement (s) (“Agreement”) for a capacity of 400 MW and 8 hours of discharge per
day(3200 MWh), for a period of 25 years or life time of the plant, whichever is
earlier, at annual fixed charges determined by the State Commission but subject to
the annual fixed Charges to be indicated by the Applicant in Rs. Lakh per MW,
whichever is lower1.

This invitation for EoI has been designed for inviting responses from interested companies
owning/developing storage plants, using any storage technology to participate in the
procurement of 400 MW and 8 hours of discharge per day (3200 MWh) of storage services
by the state of Andhra Pradesh.

Energy shifting solution shall be located/developed in the state of Andhra Pradesh and
connected/ has ability to connect to APTRANSCO system.

1
Annual Charges per MW would be determined by Andhra Pradesh Electricity Regulatory Commission (APERC)
for shortlisted projects. However, in case annual charges quoted by applicant is lower than charges determined
by APERC, the former would act as ceiling charges.
2
2 Invitation for Expression of Interest (EoI)

Transmission Corporation of Andhra Pradesh (APTRANSCO) invites Expression of Interest

(EoI) for procurement of energy shifting solution of 400 MW and 8 hours of discharge per
day (with atleast3 hours of continuous discharge) for peak load management and any other
applications.

Energy shifting solution shall be considered to be operating in two modes:

1. Load Mode (Charging, pumping etc.)

2. Generation Mode

In the Load Mode, the Energy shifting solution shall be considered as a deemed consumer.
In the Generation Mode, the Energy shifting solution shall be considered as a generator.
Any deviation from the schedule given by APSLDC shall be treated as per the APERC
regulation on Deviation Settlement Mechanism.

2.1 Disclaimer

Issues of this document do not in any way commit or otherwise oblige APTRANSCO to
proceed with all or any part of a tender process. The EoI Request is not the subject of any
process contract or any contractual obligations between APTRANSCO and the applicants to
the EoI. Further, APTRANSCO may, at its absolute discretion either modify or abandon any
part or whole of the document and / or process, without giving prior notice to any or all the
applicant. All Expression of Interest documents, upon submission by any applicant to this
EoI shall become the property of APTRANSCO. APTRANSCO is not liable for any costs or
compensation in relation to the consideration of this EoI. Proposed parties willing to
participate have to submit their responses to this request at their own cost with no liability
to APTRANSCO.

3 Technical Specifications

The energy shifting solution offered by the Applicant shall confirm to the following
technical specifications/requirements:

 No of Hours of discharge per day: 8 Hours.


 No of Hours of Continuous discharge: 3 hours.

 Conversion efficiency2: >80%.

 Maximum Ramp-up Response time in operating conditions: 30 seconds.
2
Conversion Efficiency is defined as the ratio of the energy generated to the energy stored in the storage system
3
 Maximum Ramp-down Response time in operating conditions: 30 seconds.

 Maximum Response Time from Cold Start: 300 seconds.

 Ability to operate and in grid forming and grid following modes.

4 Eligibility Criteria

1. The Applicant shall use a proven technology demonstrated successfully anywhere in

the world.

2. The Applicant shall own an operational energy storage plant or in the process of
developing a storage plant of any technology, capable of providing storage services at
the capacity quoted.

3. The storage plant shall confirm to the technical specifications specified in Section 3.

4. The storage plant shall be located within the state of Andhra Pradesh

5. The storage plant shall be of minimum 100 MW capacity. The storage plant shall have
atleast 8 hours of discharge per day. In addition, the storage plant shall be able to
discharge continuously for 3 hours.

6. The Applicant shall have minimum networth of 1.5 Cr/MW of the capacity applied,
during the last 3 financial years. (Applicant shall attach the financial statements for the
last3 financial years).

7. For under-construction storage plants, it shall be in advanced stage of construction at

the time of submission of EoI confirming to the project preparedness requirement as
per Section 5 and shall commence operations by Q3FY 2021-22.

8. The capacity of the storage plant shall be equal to or more than the quantum of storage
capacity offered by the Applicant.

9. The capacity offered by the Applicant:

a. Shall not be a subject of any litigation or conflict

b. Shall not have been contracted with any other buyer at the Time of submission
of EoI

5 Project Preparedness

If the storage plant is in under-development phase, the project shall meet the requirements
specified in Section 5.1 and Section 5.2

4
5.1 Project Preparedness

For Site centric energy storage technologies such as pump storage, compressed air etc,
theproject shall meet the following requirements.

 Site allocation/approval for atleast the offered capacity of the storage plant.

 Preliminary water allocation (where applicable).

Applicant shall furnish the necessary documents for site allocation and water allocation (if
applicable).

5.2 Technology Preparedness

For Technology centric energy storage technologies such as battery storage, fly-wheels etc,
theproject shall meet the following requirements.

 MoU/Technical Partnership Agreement/Consortium Agreement with manufacturers of

battery/fly wheels etc

Manufacturer with whom the MoU/Technical Partnership Agreement/Consortium

Agreement is signed shall have the following requirements

 Certificate from the Appropriate Government/Regulatory body demonstrating the

manufacturing capabilityof atleast the proposed storage capacity (MWh/year). (In case
the manufacturer is unable to furnish the certificate from the Appropriate
Government/Regulatory body, self-declaration from the Manufacturer would suffice.)

 Certificate from the AppropriateAgencies demonstrating the fulfilment of technical
specifications/standards.

Applicant shall furnish the necessary documents demonstrating the technical

preparedness of the project.

6 Evaluation Criteria

EoI shall be evaluated based on the annual fixed cost and the conversion loss of the storage
plant.

Evaluation Criteria = Criteria A + Criteria B

5
Criteria A: Annual fixed cost3 of the storage plant in INR Lakh per MW

Criteria B: Cost of conversion loss4 in INR Lakh per MW.

The cost of conversion loss shall be calculated as follows.

( ℎ )
= ∗ 1000 ∗ 8 ℎ ∗(%) ∗ . 4.04/ ℎ5
∗ 365

∗ 105

Summation of criteria A and B shall be arranged in ascending order and quantum shall be
allocated till 400 MW.

All the interested applicants shall make a powerpoint presentationbefore Bid

Evaluation Committee constituted by APTRANSCO on 25.02.2019 at Main Meeting
Hall of APTRANSCO, Vidyut Soudha Building, Vijayawada. Powerpoint presentation
shall contain the following information – About the firm, Products/solutions offered
by the firm, Storage solutions implemented by the firm, advantages and
disadvantages of the proposed technologyand details of the proposed solution
(Design, planning, financing, implementation, and final sign off etc.)

7 Terms and Conditions

1. The Storage plant shall provide a minimum availability (in MW) of 90% 6. For
availability > 90%, an incentive shall be provided to the developer and for availability <
90%, a penalty shall be levied on the developer, as determined by the Honourable
APERC.

2. The Annual fixed charges paid shall be ex-bus at Storage plant’s location. The plant shall
be STU connected. The responsibility of wheeling of power from and to the Storage
plant shall be of APTRANSCO or agencies nominated by APTRANSCO.

3. APTRANSCO has the right to reject the EoI of any developer in case of any conflict of
interest or for any other reasons. Mere participation in the bid shall not be construed as
a right of the developer to enter in to the agreement with APTRANSCO and the decision
of APTRANSCO in this regard shall be final and binding on all the parties. APTRANSCO
also reserves the right to modify the storage quantity anytime before the contract

3 Annual fixed charges per MW determined by Andhra Pradesh Electricity Regulatory Commission (APERC)
shall be used for payment. However, in case annual fixed charges quoted by applicant is lower than charges
determined by APERC, the former would act as ceiling charges.
4 Conversion loss is defined as the difference between the energy stored and energy generated by the storage
system. Conversion Loss (%) is 1-Conversion Efficiency (%).
5 Average power purchase cost approved in Retail supply tariff order for FY 2018-19
6 Energy shifting solution shall be available for atleast>90% of the time in a year
6
 signing. However, the storage owner/developer can opt out if the there is any material
change in the quantum or specification.

4. Impact of any Force Majeure condition, of any kind, or any other risk impacting the cost
of storage, directly or indirectly as well as delay in Commissioning of the project due to
any unforeseen reasons covered under force majeure will not affect the annual charges.
Extra cost incurred on this account shall be borne by the developer. Only the increase in
statutory taxes and duties as amended from time to time, if any, shall be
borne/reimburse by APTRANSCO.

5. The procurement of storage services shall be subject to the approval of

HonourableAndhra Pradesh Electricity Regulatory Commission (APERC).

8 Timelines

S.No. Activity Date

1 Invitation for EoI 12.02.2019

2 Last date for Submission of Queries by Applicants and Pre-bid 18.02.2019

3 Last date for Submission of EOIs, Presentation to APTRANSCO and Bid 25.02.2019
Opening

4 Evaluation & Shortlisting of Applicants 05.03.2019

5 Recommendation to ERC for Source Approval and ARR Determination 12.03.2019

Note: The venue for pre-bid conference will be intimated separately.

Only the companies eligible after the evaluation of EoI shall be allowed to participate in the
subsequent discussions.The draft concession agreement shall be shared with the
shortlisted developer(s) and meeting shall be called to resolve any queries.

9 List of Documents to be Submitted

1. Copy of Certificate of Incorporation

2. Copies of financial statement for the last three years

3. Details of the proposed storage plant

4. Commissioning certificate

5. Feasibility Report with complete details regarding Project cost, availability of storage
and project financing details

7
6. Completed project cost with break-up and item wise comparison with cost as per
feasibility report along with reason for variation

7. Necessary certificates demonstrating the project preparedness for the under-

development project

10 Contact Details

Chief Engineer (IPC & PS)

Transmission Corporation of Andhra Pradesh Limited,
VidyutSoudha,
Gunadala, Eluru Rd,
Vijayawada, Andhra Pradesh 520004
Phone No.:7382943949
Fax.:040-23393304
Email:ce_ipc@rediffmail.com

8
11 ANNEXURE I: FORMAT FOR LETTER OF RESPONSE

FORMAT FOR LETTER OF RESPONSE

Proposal Ref No:
Date:

Chief Engineer (IPC & PS)

Transmission Corporation of Andhra Pradesh Limited,
VidyutSoudha,
Gunadala, Eluru Rd,
Vijayawada, Andhra Pradesh 520004

Dear Sir,
Subject: RESPONSE To– Expression of Interest (EoI) No.ESS.01/2019,dated 12-02-
2019 -Procurement of Energy Shifting Solution of 400 MW and 8 hours of discharge
per day (3200 MWh) on long term basis from Q3 FY 2021-22 for Peak Load
Management

1. We, the undersigned, offer the following information in response to the Expression of
Interest sought by you vide your Notification No. ________________dated________________
2. We are duly authorized to represent and act on behalf of ________________
3. We have examined and have no reservations to the EoI Document including Addenda
No(s) ______________________.
4. We shall assist APTRANSCO and/ or its authorized representatives to obtain further
clarification from us, if needed.
4.1. APTRANSCO and/ or its authorized representatives may contact the following
nodalpersons for further information on any aspects of the Response
S.No Contact Name Address Telephone/Mobile E Mail

5. We offer a capacity of ____MW from our ____MW { Name and address of the Project} for
__hours (total ____ MWh of daily discharge) against the required the Capacity of 3200
MWh given in the EoI.

9
6. We have submitted our response to the invitation for EoI strictly as per Section 3, 4, 5
and 6 of the invitation for EoI, without any deviations, conditions and without
mentioning any assumptions or notes in the said formats.
7. We confirm we have not signed-up for the offered capacity to any other buyer.
8. We confirm that we have studied the provisions of the relevant Indian laws and
regulations as required to enable us to submit this response to invitation for EoI.
9. We confirm that there is no conflict of interest of any kind in our response to this
invitation for EoI.
10. We confirm that the outcome of this EoI shall be binding on us and no claims, legal or
any other kind, shall be made against APTRANSCO in any court of law.
11. In response to the EoI, we hereby submit the following details annexed to this
application:
11.1. Copy of Certificate of Incorporation
11.2. Copies of financial statement for the last three years
11.3. Details of the proposed storage plant
11.4. Commissioning certificate
11.5. Feasibility Report with complete details regarding Project cost, availability of
storage and project financing details
11.6. Completed project cost with break-up and item wise comparison with cost as per
feasibility report along with reason for variation
11.7. Necessary certificates demonstrating the project preparedness for the under-
development project
12. The undersigned declare that the statements made and the information provided in the
duly completed application are complete, true, and correct in every detail.
Yours sincerely,
(Sign)

NAME:
In the Capacity of
duly authorized to sign the
response for and on behalf
of

Date:

10
12 ANNEXURE II: PROFILE OF THE APPLICANT

PROFILE OF THE APPLICANT

Registration, Legal Details of the Organization
Name of the Organization
Unique Identification Number/registration (Pl provide a copy of Certificate of
number Incorporation)
Corporate Office Address
Registered Office Address
Web-site
Affiliated business group

Brief Description of the Firm (100 Words)

Brief Description of the products / solutions offered by the firm (500 Words)

Brief Description of the storage solutions implemented by the firm (500 Words)

Experience in implementing storage solutions

Type of Capacity of the Hours of CAPEX (Cr) / Expected life of
Conversion
S.No Storage Project (MW / Discharge Annual fixed the project
efficiency (%)
Solution MWh) (Hours) Cost (Cr) (Years)

11
Financial Performance (Last 3 Years)

Parameter (INR Cr) FY 2015-16 FY 2016-17 FY 2017-18

Networth

Annual Turnover

(Annual reports for the last 3 financial years shall be attached).

Yours sincerely,
(Sign)

NAME:
In the Capacity of
duly authorized to sign the
response for and on behalf
of

Date:

12
13 ANNEXURE III: DETAILS OF THE PROPOSED STORAGE PLANT

1. Installed Capacity (MW):

2. Number of hours of Discharge per day (Hours):
3. Actual Date / Expected Date of Commercial Operation(dd/mm/yyyy):
4. Location:
5. Offered Capacity (MW)(Minimum: 100 MW):
6. Offered Hours of Discharge per day (Hours)(Minimum: 8 hours):
7. Number of Hours of Continuous Discharge (Hours) (Minimum: 3 Hours):
8. Response Time from Cold Start (Seconds)(Maximum: 300 seconds):
9. Ramp-up Rate in operational condition (Seconds)(Maximum: 30 seconds):
10. Ramp-down Rate in operational condition (Seconds)(Maximum: 30 seconds):
11. Conversion Loss (%)(Maximum: 20%):
12. Details of capacity tied-up in the storage plant (if any)
Name of the Capacity Tied-up Levelized Annual Levelized Tariff
purchaser (in MW / MWh) Fixed charge (Rs./kWh) (if
(Rs.Cr) applicable)

Yours sincerely,
(Sign)

NAME:
In the Capacity of
duly authorized to sign the
response for and on behalf
of

Date:

13
14 ANNEXURE IV: EVALUATION PARAMETERS

Criteria A: Levelized Annual Fixed Cost (in INR Lakh per MW) : ________________
Criteria B: Cost of Conversion Loss (in INR Lakh per MW): ________________
(Refer Section 6 for calculating the cost of conversion loss)
Evaluation Parameter = Criteria A + Criteria B = ________________ (INR Lakh per MW)

Yours sincerely,
(Sign)

NAME:
In the Capacity of
duly authorized to sign the
response for and on behalf
of

Date:

14
15 ANNEXURE V: COMMISSIONING CERTIFICATE

15.1 For plants commissioned at the time of EoI submission:

Certificate from a Government Agency or the Applicant’s statutory auditor must be

furnished as per format below for Commissioning date of the Project.

Certificate from the Statutory Auditor regarding Commissioning of the Plant

Based on its books of accounts and other published information Authenticated by it, this is
to certify that …………………………………..(Name of the Storage Plant) was commissioned on
…………………..(Date of Commissioning of the Plant).

Name of the audit firm:

Seal of the audit firm:

(Signature, name and designation of the authorized signatory)

Date:

Provide Certificate as per this format only. Attach explanatory notes to the Certificate, if
necessary. In jurisdictions that do not have statutory auditors, the firm of auditors which
audits the annual accounts of the Applicant may provide the certificates required under
this invitation for EoI.

15
15.2 For plants to be commissioned at the time of EoI submission:

Self-certification by the person authorized by the board:

Certificate from the Statutory Auditor regarding Commissioning of the Plant

Based on its books of accounts or other published information Authenticated by it, this is to
certify that ……………………. (Name of the Storage Plant) is likely to be commissioned on …………….
(Expected date of commissioning of the Plant).

(Signature, name and designation of the authorized signatory)

Date:_______

16