posted Nov 20, 2011 6:53 PM by Sandipan Bhanot
Congratulations to all the developers who received the shortlisting notice from NVVN last week.
Now the race is on to submit a bid for the FIT by 2:30PM on Dec. 2nd 2011. According to unofficial reports, over 1000MW of projects have been shortlisted while the total PPAs available are only 350MW. The developers have put in a lot of hard work to get to this point and now the critical decision needs to be taken - what to bid?
Well, this higher level question can be broken down into three key sub-questions: - What will be your total Project Cost? Not just the EPC, but land, Interest on Working Capital, BG Charges and so on - add them all in to get to a number. Also remember, the total cost will also depend on when you plan on ordering key components; and how would you phase the construction work. EPC cost is sensitive to both your timing as well as the dollar-rupee rate.
- What will be the total energy output? Getting an accurate estimate of this number is critical to your success. Experienced developers carefully consider the generation along with the EPC cost and make informed trade-offs. It is a rookie mistake to solely focus on the Project Cost. An experienced EPC company will be able to help you make the right decision by presenting the alternatives and their impact on the project. Contact us, if we can help answer any questions.
- What IRR are you willing to accept? This is up to you and your strategy of course. I will make two points here. First, pay special attention to the debt rate. Foreign debt properly leveraged, can shave off up to four points from the debt rates available in India. Again, work with a strong partner here. Second, perform a lot of what-if analysis to get comfortable with the choices you are making. Staten Solar is making a FREE project IRR Calculator customized for the NVVN Batch-II to the community to do quick basic IRR calculations. For detailed analysis or EPC quotes, please contact us.
Good luck with bidding! |
posted Jan 11, 2011 7:31 PM by Sandipan Bhanot
A vast majority of the project owners under the RPSGSP
scheme are acting as if there is plenty of time to install the project. There
isn’t. [Read More] |
posted Dec 14, 2010 5:46 PM by Sandipan Bhanot
[
updated Jan 11, 2011 7:38 PM
]
The recently concluded 'reverse auction' of feed in tariffs by NVVN, an agency of the Govt of India, has yielded results that have many scratching their heads. With the reverse auction, the government wanted to find out what FIT the market will be willing to accept and the results are stunning. The median price for the successful bids is Rs.12.3/KWhr.
|
posted Dec 4, 2010 7:24 PM by Sandipan Bhanot
[
updated Dec 8, 2010 7:36 PM
]
This article paints a pretty good picture of the state of the Indian Solar Mission. Attracting foreign capital and the best of technologies available worldwide will be the key to success. Here is the original FT article. |
|
