CERC 22july
CERC 22july
CERC 22july
1.2 Study and evaluate the fuel cost in biomass and bagasse based power
plant;
1.3 Study and recommend benchmarking norms for Municipal Solid Waste
based power plants, Solar Thermal;
1.4 Study and analyse the challenges in the renewable energy sector
considering various policy changes and emerging technologies;
1.5 To assist the Commission in framing RE Tariff Regulations for next control
period; analysing comments and suggestions received from stakeholders
during various stages of consultation process; and
1.6 To prepare Tariff Order for the first year of the control period.
2. Scope of work
2.1 The scope of the assignment also includes specific assistance on
following aspects:
A. Study and evaluate the cost of fuel for Biomass and Bagasse based Power
Projects;
B. Benchmarking technical and operational parameters for RE technologies
such as MSW based Power projects, Solar Thermal Power Projects,
Offshore-Wind Projects in addition to the RE technologies covered in existing
RE Regulations etc;
C. Analysis and study on various alternatives and approaches for determining
the tariff principles and Regulatory options for RE technologies;
D. Assistance in framing the terms and conditions for tariff determination from
RE sources as RE Tariff Regulations;
E. Assistance in preparing tariff order for first year control period of RE Tariff
Regulations including preparation of tariff models for each of the RE
technologies.
A. Study and evaluate the cost of fuel for biomass and bagasse-based power
projects:
C. Analysis and study on various alternatives and approaches for determining the
tariff principles and Regulatory options for RE technologies
i. Review the existing tariff designs and tariff structures for renewable
generating stations considering the current market scenario.
ii. Collection of relevant details and information including but not limited to
capital cost, interest on loan, interest on working capital, Operation &
Maintenance (O&M), return on equity, depreciation, sourcing and cost of
fuel, land requirements and cost, cost of equipment and balance of plant,
operation and maintenance expenses, comparison of competitive bids
and tariff discovered for renewable energy projects at Central and State
level, auxiliary consumption, fuel calorific value and other fuel related
specifications for renewable projects;
iii. Review of the efficacy of the normative approach for allowing two-part
tariff for renewable generating stations.
i. To collate comments received from the stakeholders and to evaluate the data
collected from different institutions and studies undertaken above.
ii. To develop and recommend appropriate Tariff Structure, Tariff Design, control
Period and Financial norms for RE based Power Projects.
iii. To assist in formulation of draft Terms and Conditions for Tariff Determination
from Renewable Energy Sources Regulations 2023 (hereinafter referred as
the “Draft Regulations”) along with Explanatory Memorandum;
iv. To assist in formulation of Terms and Conditions for Tariff Determination from
Renewable Energy Sources Regulations 2023 (hereinafter referred to as the
“Final Regulations”) along with Statement of Reasons taking into
consideration the comments and suggestions received on the Draft
Regulations and views expressed during Public Hearing(s).
E. Assistance in preparing tariff order for first year control period of RE Tariff
Regulations including preparation of tariff models for each RE technologies
2.2 While providing assistance in preparing the Draft Regulations and explanatory
memorandum, the consultant shall keep in view the following.
i. The Electricity Act, 2003, National Electricity Policy, Tariff Policy and rules
and guidelines issued by Government of India (GoI) under the Electricity Act,
2003;
ii. Various judgments pronounced by Appellate Tribunal for Electricity (APTEL),
Hon’ble Supreme Court and other judicial pronouncements which may have a
bearing on the new Regulations;
iii. Deliberations during public hearings;
iv. Comments and suggestions received on the Draft Regulations;
v. Data furnished by various stakeholders; and
vi. Commission’s viewpoint.
Annexure -II
Profile of the Consultant
Qualification Criteria
1. The consultant should have completed at least five assignments in the last ten
years which shall include:
2. The bidding consultant should not have been blacklisted/debarred by the Ministry
of Finance or the Ministry of Power (MOP), organizations under the jurisdiction of
MOP, or CERC or any SERC/ JERC. An undertaking in this regard shall be given by
the consultant.
3. The applicant must have minimum annual financial turnover of Rs. 1 Crore during
the last three years (2020-21, 2021-22, 2022-23). Documentary evidence to this
effect duly attested by a Chartered Accountant should be submitted along with the bid.
4. The bidders who fulfil all of the above criteria shall be termed as eligible bidder
Note: The consultant must provide necessary document(s) for proof of successful
completion of the assignments from the respective client(s) without which such
assignment(s) shall not be considered for evaluation
*****
Annexure – IV
Payment Terms
1. 10% of the professional fee as advance of the total fee of the study at
the time of signing agreement, subject to submission of an irrevocable
Bank Guarantee for equal amount. If advance is not requested by the
Consultant, 10% of the fee can be claimed at the end of the contract
period on submission of the final report.
2. 20% of the professional fee on the submission of the inception report of
the Study;
3. 20% of the professional fee on submission of first Draft Regulation along
with explanatory memorandum;
4. 20% of the professional fee on submission of Final Regulation along
with Statement of Objects and Reasons (including all intermediate
reports/ analyses) of the study;
5. 30% of the professional fee on successful completion and acceptance
of the Final Regulation, at the end of the contract period.
6. The Consultant shall provide an irrevocable Performance Bank
Guarantee of 10% of amount stipulated in the agreement at the time of
signing the agreement to be valid till 3 (three) months after the expiry of
the agreement. In the event of extension of assignment/ Contract, the
Performance Bank Guarantee shall be suitably extended by the
consultant at its own cost and extended Performance Bank Guarantee
shall be made available to CERC within 7 days of receipt of such
extension Information. Performance Bank Guarantee will be kept as
performance security and can be invoked to appropriate against breach
of any terms of this Agreement or for non-performance.
7. The stage payment shall not be released in case of unsatisfactory work
and decision of CERC in this aspect shall be final.
Annexure – V
(FINANCIAL)
I. GENERAL INFORMATION:
Amount (Rs)
Component
₹
Consultant Charges (Amount in Words Rupees__________________________
___________________
(Inclusive of taxes)
_ _
__)
S. Maximum
Criteria for Technical Evaluation
No. Marks
Project Manager
(a) Qualification Criteria - B. Tech with MBA / Chartered/ Cost Max 10 marks
& Management Accountant with 10 years or more
experience in handling of various Acts/Regulations,
technical, financial & commercial matters etc. related to
regulatory framework of power sector specially in
generation/renewable segment.
Note:
a) Actual CV has to be submitted for each of the proposed team members.
b) Submission of competition certificate is essential. Where the applicant is
not able to furnish completion certificate, the applicant is required to submit
invoices raised, bill-wise details of payment received duly certified by the
Chartered Accountant, TDS certificate for all payments received and copy of
final / last bill paid by company in support of completion certificate.
d) It is expected that the key members of the team proposed in the bid
document shall continue throughout the duration of the assignment. In the
event of any of the key members not being available for any reason, other
experts of the consulting firm with equivalent level of qualification and
experience shall be deployed. Failure to meet the criteria shall be construed
as non-compliance of the terms of assignment thereby making the consulting
firm liable for penal action as per agreement.
1. Background
1.1 The Central Electricity Regulatory Commission was constituted under the
erstwhile Electricity Regulatory Commissions Act, 1998 and subsequently
recognized as the Central Electricity Regulatory Commission (hereinafter
referred as “the Commission”) under the Electricity Act, 2003 (hereinafter
referred as “the Act”). The Commission has been vested with the powers under
clause (s) of Sub-section (2) of Section 178 of the Act to make regulations on
the Terms and Conditions for Tariff determination from Renewable Energy
Sources.
1.2 Further, as per Clause (a) of Section 61 of the Act, Terms and Conditions
for Tariff determination from Renewable Energy Sources Regulations
(hereinafter referred as “RE Tariff Regulations”) specified by the Commission
act as guiding principle for the State and Joint Electricity Regulatory
Commissions. The Commission has also been vested with the responsibility of
promoting market development in the power sector; to encourage competition;
and induce efficiency improvement with the larger objective to extend the fruits
of competition and efficiency to the electricity consumers.
1.3 The Commission has issued RE Tariff Regulations for the period 2009-12,
2012-17, 2017-20 and 2020-2023. Considering the developments in the sector
during the current control period, current and perceived challenges in the
renewable energy sector and need for market development, the Commission
is of the view that it is necessary to have a fresh look into the basis and
assumptions of tariff determination from Renewable Energy Sources for the
control period (FY 2023-24).
2.2 Study and evaluate the fuel cost in biomass and bagasse based power
plant;
2.3 Study and recommend benchmarking norms for Municipal Solid Waste
based power plants, Solar Thermal;
2.4 Study and analyse the challenges in the renewable energy sector
considering various policy changes and emerging technologies;
2.6 To prepare Tariff Order for the first year of the control period
3. Scope of work
3.1 The scope of the assignment also includes specific assistance on
following aspects:
(A) Study and evaluate the cost of fuel for Biomass and Bagasse
based Power Projects;
(E) Assistance in preparing tariff order for first year control period
of RE Tariff Regulations including preparation of tariff models for
each of the RE technologies.
A. Study and evaluate the cost of fuel for biomass and bagasse-based power
projects:
i) Study the policies and review the operational/ performance parameters and
financial norms pertaining to Waste to Energy, Solar Thermal, Offshore-Wind
based Power Projects in India and globally;
ii) Suggest benchmark costs and norms for operational and technical
parameters for MSW based Projects, Solar Thermal, Off -shore Wind Power
Projects.
i) Review the existing tariff designs and tariff structures for renewable
generating stations considering the current market scenario.
ii) Collection of relevant details and information including but not limited to
capital cost, interest on loan, interest on working capital, Operation &
Maintenance (O&M), return on equity, depreciation, sourcing and cost of fuel,
land requirements and cost, cost of equipment and balance of plant, operation
and maintenance expenses, comparison of competitive bids and tariff
discovered for renewable energy projects at Central and State level, auxiliary
consumption, fuel calorific value and other fuel related specifications for
renewable projects;
iii) Review of the efficacy of the normative approach for allowing two-part
tariff for renewable generating stations.
E. Assistance in preparing tariff order for first year control period of RE Tariff
Regulations including preparation of tariff models for each RE technologies
(i) The Electricity Act, 2003, National Electricity Policy, Tariff Policy
and rules and guidelines issued by Government of India (GoI) under
the Electricity Act, 2003;
(ii) Various judgments pronounced by Appellate Tribunal for
Electricity (APTEL), Hon’ble Supreme Court and other judicial
pronouncements which may have a bearing on the new Regulations;
(iii) Deliberations during public hearings;
(iv) Comments and suggestions received on the Draft Regulations;
(v) Data furnished by various stakeholders; and
(vi) Commission’s viewpoint.
Timeline of deliverables
4.1.2 The Consultant will be required to submit reports on the following study
within 60 days from the date of award.
4.3 Information/ data required for the analysis of debt market, study of
various methods for rate of return etc. are to be arranged by the consultant on
their own.
5. Payment Schedule:
5.1 10% of the professional fee as advance of the total fee of the study at the
time of signing agreement, subject to submission of an irrevocable Bank
Guarantee for equal amount. If advance is not requested by the Consultant, 10%
of the fee can be claimed at the end of the contract period on submission of the
final report.
5.2 20% of the professional fee on the submission of the inception report of the
Study;
5.3 20% of the professional fee on submission of first Draft Regulation along
with explanatory memorandum;
5.4 20% of the professional fee on submission of Final Regulation along with
Statement of Objects and Reasons (including all intermediate reports/ analyses)
of the study;
6. Eligibility Criteria
6.5 The Consultant should have legal, regulatory and financial background.
6.7 The applicant must have minimum annual financial turnover of Rs. 1
Crore during the last three years. Documentary evidence to this effect duly
attested by a Chartered Accountant should be submitted along with the bid.
6.8 The bidders who fulfil all of the above criteria shall be termed as eligible
bidder.
7.1 The technical bid or only the eligible bidder, decided as per clause 6 of
this TOR, shall be evaluated for selection of successful bidder.
7.2 Technical component will carry 70% weightage and financial evaluation
will carry 30% weightage.
7. 3 The bids of the eligible bidders, determined as per Clause 6 of this TOR,
will be scrutinized by Consultancy Evaluation Committee (CEC) and shortlisted
bidders will be called for interaction with the CEC (to be supplemented with a
presentation not exceeding 6 slides). Their technical performance will be
evaluated based on the following criteria:
S. Maximum
Criteria for Technical Evaluation
No. Marks
The Consultant’s relevant experience for the
1 30
assignment
Experience in regulatory assignments on matters
involving Tariff Model, Tariff order, Tariff Regulation for
Renewable Energy Technologies in India in the last ten
years.
(a) Max 30 marks
i) 20 marks for 5 completed assignment in last 10 years.
ii) 2 marks for each additional assignment in the last 10
years
Understanding of the issues and approach to be
followed
d) It is expected that the key members of the team proposed in the bid
document shall continue throughout the duration of the assignment. In the
event of any of the key members not being available for any reason, other
experts of the consulting firm with equivalent level of qualification and
experience shall be deployed. Failure to meet the criteria shall be construed
as non-compliance of the terms of assignment thereby making the consulting
firm liable for penal action as per agreement.
e) The minimum qualifying marks in the Technical Evaluation is 60% of the
total score for technical component.
7.4 Only those bidders, who qualify technically as clause 7.3 as the case may
be, would be considered for Financial Evaluation.
7.5 Weight for Financial Proposal with the lowest quoted price will be given a
financial score of 100 and other financial proposals would be given financial
scores that are inversely proportional to their prices.
7.6 The total score will be obtained by weighting the Technical and Financial
scores.
7.8 The right to reject any or all bids rests with CERC without assigning any
reason.
7.10 The CERC will have an option to terminate the contract by giving a
notice of one month. In such cases, the Consultant shall be paid fees after
taking into consideration the part of work completed prior to such foreclosure,
termination or cancellation of the engagement as may be decided by the
CERC, and the decision of the CERC shall be conclusive and binding. The
fees so fixed and paid shall be deemed to be final payment in such cases.
The consultant shall abide by the terms and conditions of the Agreement
as per Annexure – IV.
ANNEXURE – I
(TECHNICAL)
I. GENERAL INFORMATION:
II. TECHNICALSPECIFICATIONS:
1. Department/ organisation
1.1. Department(s) of the organization/Institution(s) where the study will
be carried out
3
4
10
(FINANCIAL)
I. GENERAL INFORMATION:
(Amount in Words
Consultant
Rupees________________________________________ )
Charges
(Inclusive of
taxes)
Declaration/ Certification
To,
The Secretary,
Central Electricity Regulatory Commission
3rd & 4th Floor, Chanderlok Building, 36, Janpath
New Delhi - 110001
Sir,
I have carefully gone through the Terms & Conditions contained in the Terms
of Reference (TOR) regarding study report on “Terms and Conditions for Tariff
determination from Renewable Energy Sources Regulations,2023”. I hereby declare
that my firm has not been debarred/blacklisted by the Ministry of Finance or the
Ministry of Power (MOP) or organizations under the jurisdiction of MOP, or CERC or
any SERC/ JERC. I further certify that I am an authorised signatory of my
company/firm and therefore competent to make this declaration.
Yours’ sincerely
Name: _______________________
Designation: ___________________
Address: _______________________
ANNEXURE – IV
AGREEMENT
This AGREEMENT entered into on this --------day of-------------2023 [the date of the
agreement] BETWEEN [give the Name and full address of the Consultant] hereinafter
referred to as “the Consultant” or the party of the First part AND Central Electricity
Regulatory Commission represented by its Secretary having its office at 3rd and 4th
Floor, Chanderlok Building, 36 Janpath, New Delhi -110001 (hereinafter called
"CERC") or the party of the Other part.
WHEREAS
1. Definitions:
6. Restrictive terms:
7. Performance Guarantee
The Consultant shall furnish an irrevocable Performance Bank Guarantee of
10% of value amount stipulated in the agreement at the time of signing the
agreement and shall be kept valid for 3(three) month after the expiry of the
agreement. In the event of extension of assignment/Contract, the Performance
Bank Guarantee shall be suitably extended by the consultant. The Performance
Bank Guarantee and/or the extended Bank Guarantee shall be kept as security
for performance of the contract/work and shall if need be, invoked for breach of
any of any of the terms of this Agreement and/or for non- performance by the
consultant.
8. Liquidated Damages
The timelines for deliverables as per Clause 4, above shall be strictly adhered
by the consultant. The tasks should be completed in a phased manner and
overlapping of one or more study shall not be a constraint for adherence to the
timelines specified. In case of any delay in adhering to the timelines, of
completion of study and error/variation in submitted report, liquidated damages
shall be levied in the following manner.
9. Termination of contract:
11. Notice Any notice between the parties shall be in writing and posted to
the other party to the last known address.
12. Arbitration:
13. Jurisdiction:
1. Witness
2. Witness
Annexure - V
1. Definitions
3. Disclosure of information
3.1 If the Consultant becomes legally required to disclose business information
including confidential Information, or any part thereof, the Consultant will give
CERC prompt notice of such requirement. Upon such notice or request, CERC
shall either waive compliance to any of the terms of this agreement or if CERC is
unable to obtain any order prohibiting disclosure of such business information and
made known to the consultant, only then the Consultant shall disclose that portion
of the Confidential Information, which are necessary to ensure compliance of such
legal requirement.
3.2 Any business information including confidential Information that is disclosed
pursuant to a legal obligation as above shall maintain its confidential or restrictive
access character if the disclosure does not result in the information becoming
generally known or available to third parties, without restrictions on further
disclosure. The Consultant shall have the responsibility to show that the
information remains confidential based on the foregoing exceptions and must
inform CERC within forty eight hours from the date/ time of disclosure upon such
exceptions.
4. Rights on Information
4.1 The Consultant agrees that business information including confidential
Information is and will remain the property of CERC and all such Information in
tangible form and copies thereof will be returned promptly to CERC upon request
of officer in charge or at the end of the assignment. In case, the Consultant is
required to hold on to the confidential information in furtherance of the assignment,
such copy shall be maintained in a safe and secure location by the Consultant. No
use of such business information including confidential information is permitted
except as provided in this agreement, and the Consultant agrees not to rely upon,
in any manner, the said confidential information, except as authorized by this
agreement. No grant of any of the CERC's intellectual property rights, including
any license implied or otherwise, is given or intended to be given.
4.2 Any additional information provided by CERC to the Consultant for its
evaluation, together with the tariff petitions and the information obtained by the
Consultant as a result of the scrutiny and examination thereof shall also be deemed
to be confidential information and is subject to this agreement. The interim report
or analysis or deliverables made therefrom shall be returned or disposed of as
directed by CERC.
11. The Consultant affirms that the individual(s) executing this agreement
on behalf of the said consultant has the authority to bind the Consultant to the
terms hereof.
12. The Consultant acknowledges and agrees that each and every term of
this agreement is of the essence. If any one or more of the provisions contained in
this agreement should be declared invalid, illegal or unenforceable in any respect,
the validity, legality and enforceability of the remaining provisions contained in this
Agreement shall not in any way be affected or impaired thereby so long as the
commercial, economic and legal substance of the transaction contemplated
hereby are not affected in any manner materially adverse to any Party. Upon such
a declaration, the Parties shall modify this Agreement so as to carry out the original
intent of the Parties as closely as possible in an acceptable manner so that the
purposes contemplated hereby are consummated as originally contemplated to
the fullest extent possible. However, the decision of CERC shall be final.
13. Arbitration:
13.1 Any difference, dispute, claims which may arise between the parties
hereto as to the construction or true intent and meaning of any of the terms
and conditions herein contained or as to any payment to be made in
pursuance hereof or as to any other matter arising out or as to any other
matter arising out of or connected with or incidental to these presents or as
to the rights, duties and obligations of any of the parties, such difference,
dispute or claim shall be mutually settled amicably by arbitration through a
sole arbitrator to be appointed by CERC.
13.2 The Arbitration shall be conducted in accordance with the Arbitration
and Conciliation Act, 1996 or any statutory amendments thereof. The
venue of such arbitration will be Delhi/ New Delhi.
1.
2.
CERTIFICATE
(Wherever applicable)
The undersigned agree to abide by the conditions of the grants and certify that
available facilities for proposed work shall be extended to the investigator/study team.
Date