Commissioning and Operation of Exotic Energy Technologies in Sri Lanka

/ MINISTRY OF POWER AND RENEWABLE ENERGY
SRI LANKA SUSTAINABLE ENERGY AUTHORITY /

COMMISSIONING AND OPERATION OF EXOTIC ENERGY TECHNOLOGIES IN SRI LANKA

Sri Lanka Sustainable Energy Authority (SEA) of the Ministry of Power and Renewable Energy invites interested local firms preferably with sound exposure to novel renewable energy development at international levelthat are willing to commission and operate exotic energy technologies as pilot power plants in Sri Lanka.

Establishment of these pilot power plants is carried out with the objective of supporting the target of the Sri Lankan Government to achieve carbon neutrality by 2050. Renewable energy technologies like hydro, solar, wind, biomass (dendro/agricultural waste) and biogas have proven commercial success in electricity generation in Sri Lanka. Energy generation from exotic energy technologies has drawn attention of the Sri Lankan government as an emerging option to diversify the energy mix. The proposed exotic energy technologies for the first phase of project implementation are as follows.

Large scale battery storage (1 - 10 MW in 3h night peak)
Waste to energy (<2MW)
Ocean energy 300 kW – 1 MW
Small wind power vertical type systems (<2 MW)
Hybrid power systems – wind, solar, battery (1 - 10 MW in 3h night peak)
Geothermal Energy (<10 MW)
Pumped Storage (<10 MW)
RE solutions merged with agriculture (<10 MW)

Interested parties can view and download the full set of documents (including the terms and conditions, SEA expectations, selection criteria, etc. by logging on to

Conditions for developers:

Developers should submit the project proposal in a sealed envelope. The selection would be based on the recommendation of a committee of experts.
Developers can submit proposals on one or more technologies mentioned above. If any developer submits proposals on more than one technology, separate applications should be submitted.
The developer has the freedom to select a site at his will. However, resource assessment and the energy generation forecast should be submitted by the respective bidder.
The proposed system should have demonstratedcommercial viability elsewhere in the world.
Detailed feasibility study should be submitted by the respective bidder, if shortlisted for further evaluation.
If detailed feasibility study is accepted, the normal procedures to implement renewable energy development projects would be applicable.
SEA will facilitate the bidder to acquire necessarylicenses and approvals from relevant authorities and negotiating new tariff with the Government. Finding sites can also be facilitated in cases other than item 8 above.
All projects should be carried out as SEA R&D projects. As the sole purpose of implementing pilot projects is to develop the particular technologies in the country, SEA expects to carry out thorough R&D programmes in the relevant technologies. Therefore, prospective developers should agree for using the projects in the future R&D programmes carried out by SEA.
A non-refundable proposal processing fee of LKR 50,000 should be paid by the developer when submitting a proposal. This amount would be deducted from the application fee at the stage of formal application procedure in regards of the application being selected.

Proposalsshould be submitted by developers on or before1500 hrs,23April2018.For clarifications please contact +94112677445 Ext 507 or

Instructions to Developers

1.0Submission of Proposals

The developers are required to use the Proposal Submission Formattached hereto to submit the proposals. Developers can submit proposals on one or more technologies mentioned below with the specified capacities.

Large scale battery storage (1 - 10 MW in 3h night peak)
Waste to energy (<2MW)
Ocean energy 300 kW – 1 MW
Small wind power vertical type systems (<2 MW)
Hybrid power systems – wind, solar, battery (1 - 10 MW in 3h night peak)
Geothermal Energy (<10 MW)
Pumped Storage (<10 MW)
RE solutions merged with agriculture (<10 MW)

If any developer submits proposals on more than one technology, separate applications should be submitted.

Proposals should include the following and shall be supported with the documents such as customer reference details, promotional material, etc.

Duly perfected Proposal Submission according to the format given in Annex 1
Detailed Technical Proposal (guidance is provided in 2.0 and 3.0)
Documents in proof of the previous experience
Documents in proof of financing

Proposals have to be submitted in a sealed envelope, clearly marked ‘Proposal for Commissioning and Operation of Exotic Energy Technologies in Sri Lanka’ on the top left-hand corner of the envelope.

1.1Proposals will be received by Chairman, Procurement Committee, Sri Lanka Sustainable Energy Authority (SEA), 1st Floor, Block 05, BMICH, Bauddhaloka Mawatha, Colombo 07 upto 1500 hrs. on 2018 April 23.

1.2Any Proposal received by the SEA after the above deadline will be returned unopened to the developer.

1.3A non-refundable proposal processing fee of LKR 50,000 should be paid by the developer when submitting a proposal. This amount would be deducted from the application fee at the stage of formal application procedure in regards of the application being selected.

2.0 Required Details

Evaluation would be done by a panel of experts representing academia, researchers, utility, financial specialists and SEA officials. Proposals on each technology will be screened based on their technical viability. Socio-economic, energy and environment considerations, etc. will be broadly taken into account in selecting the proposals. Therefore, SEA will not be liable for selecting any of the proposals and the final decision on the same will be vested with SEA.

The following details should be submitted.

Parameter / Special notes
Basic Details
Company registration / (available/ not available)
Grid connectivity / (Yes/No/Not known)
Details of nearest grid substation
Land availability details / if yes
If no, time to acquire
Quality of technical approach and proposal
Technical approach and description
Innovative, upto date approach with local vale addition
Technology design to be implemented
Availability of resource under the proposed site.
Details of the operation at a specific site.
Any other details relevant to technology and design
Previous Experience in Projects
Number of RE projects of similar scale
Specific successful experience in the global sector
Past activities in the particular technology
Details of the capacity of installed renewable energy plants and total electricity generation during past two years.
Any other information relevant for the purpose of performance evaluation
Qualification of Key Personnel
Qualifications/Experience of Key Technical Personnel / Curriculum Vitae of key technical personnel attached.
(Note that the progress reports submitted by the company should be signed by all the key staff of the assignment). You should propose the structure and composition of your team including technical and support staff.
Engineering (Planning & Design)
Technical (Installation)
Established links with Foreign Universities/research firms
Any other information relevant for the purpose of performance evaluation
Proposed Work Plan and Project Completion
Proposed work plan / You should propose the main activities of the project, their content and duration, milestones and delivery dates. The proposed work plan should be consistent with the approach and methodology, showing understanding of the specifications and technical schedule and ability to translate them into a feasible work plan.
Project Completion Period in Weeks* / *50 weeks or less will receive fullmarks, 1 mark will be deducted per week of additional time requested
Any other information relevant for the purpose of performance evaluation should be furnished

The input information given by the developer on these would be considered in the evaluation criteria (3.0).

3. 0 Evaluation Criteria

Developers will be ranked using thescore as indicated below.

(a)Technical Criteria

Technical proposals will be evaluated according to the following criteria.

Quality of Proposal (50%)
Previous Experience (25%)
Qualifications/Experience of Key Technical Personnel (20%)
Proposed Work Plan and Project Completion (5%)

(b)Financial Criteria

Under the financial details, the key criterion is the unit electricity price. 5% of the income should be shared with SEA for the project facilitation and other development initiatives, and it should be taken into account in the declaration of the proposed tariff. The format given in Annex I should be followed.

Selling price (tariff) of the power generation. / LKR./kWh
Supply hours during the day / From …………..
To………………
Guaranteed quantity of renewable energy to be supplied / MWh/year
Investment Plan / (details required)
Amount of secured investment / LKR
Foreign Direct Investment (if any) / LKR equivalent

*The levelised cost of providing the above mentioned quantity of MWh/year shall include all costs incurred in operating the plant. It shall cover any additional cost above the material cost of items covered in warranties, associated cost of labour and related overheads already built into the plant cost, which are essential for continuous operation of the system during the relevant twenty year period.

(i)Copies of the documents to prove the financial capability should be attached.

(ii)The expected tariff offered above should be open for acceptance until 2019June 30 and that it will not be withdrawn or revoked prior to that date.

(iii)Developers should be prepared to present their proposals in such instance SEA invites to do so based on the requirements of the evaluation panel.

(iv)The proposals will finally be ranked according to their scores. The developers qualifying in the technical proposal will be considered depending on the acceptance of the financial proposal. In assessing the overall proposal, socio-economic considerations, etc. will be broadly taken into account.

4.0Acceptance of Proposals

SEA is not bound to select any of the organisations submitting proposals. Further, as implementation of pilot projects in exotic technologies will depend on level of technology, proposed tariff and other socio-economic and environmental constraints, SEA does not bind itself in any way to select the developer offering the lowest tariff or any other high ranking proposals.

5.0Cost of Development of Proposals

The developer shall bear total projectcost associated with the preparation and submission of its Proposal, and the SEA shall not be responsible or liable for those costs, regardless of the conduct or outcome of the process of development of proposals.

6.0Clarifications of Proposal Documents

A prospective Developer requiring any clarification of the proposal documents may notify the SEA in writing to the address Chairman, Procurement Committee, Sri Lanka Sustainable Energy Authority, 1st Floor Block 05 BMICH, BauddhalokaMawatha Colombo 00700.

7.0Commercial Arrangements

7.1The selected developers will have to secure financing for the project from national or international sources without any government guarantee.

7.2The selected developersare liable to provide all the items as agreed in the contract to implement the project.

7.3The SEA will facilitate the developer to acquire necessary licenses and approvals from relevant authorities if developer cannot proceed without SEA support, and negotiating new tariff with the Government.

7.4If detailed feasibility study is accepted, the normal procedures to implement renewable energy development projects would be applicable.

8.0Special Terms and Conditions

8.1The developer has the freedom to select a site at his will. However, resource assessment and the energy generation forecast should be submitted by the respective developer.

8.2The proposed system should be commercially viable within the globe.

8.3Detailed feasibility study should be submitted by the respective developer, if shortlisted for further evaluation.

8.4All projects should be carried out as SEA R&D projects.As the sole purpose of implementing pilot projects is to develop the particular technologies in the country, SEA expects to carry out thorough R&D programmes in the relevant technologies. Therefore, prospective developers should agree for using the projects in the future R&D programmes carried out by SEA.

Proposal Submission FormAnnex I

┌

your letter head

┘

[ date ]

Chairman

Procurement Committee

Sri Lanka Sustainable Energy Authority

1st Floor, Block 05, BMICH

Bauddhaloka Mawatha

Colombo 00700

Design, installation, commissioning and operation of ‘COMMISSIONING AND OPERATION OF EXOTIC ENERGY TECHNOLOGIES IN SRI LANKA’

We, the undersigned, having read and fully acquainted ourselves with the contents of the bidding documents, do hereby undertake to ‘COMMISSIONING AND OPERATION OF EXOTIC ENERGY TECHNOLOGIES IN SRI LANKA’, in accordance with the terms and conditions given in the aforesaid bidding documents.

1.We, the undersigned offer to provide the services on ‘COMMISSIONING AND OPERATION OF EXOTIC ENERGY TECHNOLOGIES IN SRI LANKA’, in accordance with your instructions to bidders.

2.The financial details are mentioned herein.

*The levelised cost of providing the above mentioned quantity of MWh/year should include all costs incurred in operating the plant. It shall cover any additional cost above the material cost of items covered in warranties, associated cost of labour and related overheads already built into the plant cost, which are essential for continuous operation of the system during the relevant twenty year period.

Note:Copies of the documents to prove the financial capability should be attached.

The expected tariff offered above should be open for acceptance until 2019June 30 and that it will not be withdrawn or revoked prior to that date.

3. We understand that you are not bound to accept the lowest tender and that you reserve the right to reject any or all tenders or to accept any part of a tender without assigning any reason thereof.

4. We undertake to adhere to the timeline given under the Instruction to Bidders.

5. Our Bank Reference is as follows:

Signature of Bidder / Common seal
Name of Bidder
Address
E-mail / Facsimile
Telephone / Date