Renewable Energy Procurement Capacity Building
The U.S. Trade and Development Agency (USTDA) is sponsoring the Global Procurement Initiative: Interstate Clean Energy Procurement Program for India. This program consists of multiple activities a virtual workshop, which will train participants on clean energy procurement practices.
The workshops are designed to investigate how to integrate best-value determinations and international best practices in public procurement for India’s clean energy sector. The trainings will specifically explore value-based procurement mechanisms designed to achieve optimal results from public procurements in the energy sector using advanced value and quality-based procurement methods. The aim of the workshops is to improve technical capacity in developing technical specifications, utilizing life-cycle cost analysis (“LCCA”), and creating non-price criteria for evaluation factors. This Program will also provide a platform for cross-border knowledge sharing in the procurement of renewable energy.
K&M was engaged by the Business Council for International Understanding (BCIU) to develop and deliver USTDA-funded training sessions on international procurement best practices and practices to achieve value for money in the clean energy sector. K&M delivered two webinars listed below, including (i) preparation of presentation slide decks, (ii) development of responses for prospective Q&A, and (iii) conducting each webinar:
- Bidding Process for the Procurement of Power: This session discussed bidding process for the procurement of renewable energy in India, covering the regulatory framework and guidelines, power market structure, and modes of procurement, and comparison with examples in emerging markets.
- Variable Renewable Energy Power Purchase Agreements: This session discussed overview of PPA for procurement, key obligations and clauses in PPA, and considerations for developing a bankable PPA for VRE and ESS projects.
The U.S. Trade and Development Agency (USTDA) sponsored the Global Procurement Initiative: Interstate Clean Energy Procurement Program for India. This program consists of multiple activities, including two (2) separate and distinct workshops hosted in New Delhi, India, that trains participants on clean energy procurement practices.
The workshops are designed to investigate how to integrate best-value determinations and international best practices in public procurement for India’s clean energy sector. The training specifically explores value-based procurement mechanisms designed to achieve optimal results from public procurements in the energy sector using advanced value and quality-based procurement methods. The aim of the workshops is to improve technical capacity in developing technical specifications, utilizing life-cycle cost analysis (“LCCA”), and creating non-price criteria for evaluation factors. This Program will also provide a platform for cross-border knowledge sharing in the procurement of renewable energy.
K&M was engaged by the Business Council for International Understanding (BCIU) to develop and deliver USTDA-funded training sessions on international procurement best practices and practices to achieve value for money in the clean energy sector.
The workshops were designed to investigate how to integrate best-value determinations and international best practices in public procurement for India’s clean energy sector. The training specifically explores value-based procurement mechanisms designed to achieve optimal results from public procurements in the energy sector using advanced value and quality-based procurement methods. The aim of the workshops is to improve technical capacity in developing technical specifications, utilizing life-cycle cost analysis (“LCCA”), and creating non-price criteria for evaluation factors.
The K&M team provided input on agenda development, developed training presentations, and content, participated in an industry roundtable with private sector representatives, and delivered training sessions to public sector energy sector representatives from 10 Indian states.
K&M traveled to New Delhi to deliver training sessions on the role of new energy technologies, best value structures and processes, developments and lessons learned in renewable energy tenders, ensuring bankability of energy projects, financial and commercial considerations for renewable energy PPAs, and considerations for value management during tendering and implementation.
K&M designed a $5 million program of technical assistance that would enable the Government of India to effectively respond to the needs of private power project developers attempting to develop projects in the country.
K&M was engaged by US DOE to conduct a comprehensive review of potential application of clean coal power generation technologies in China, India and Indonesia. K&M did a detailed analysis of these three markets to assess specific opportunities, barriers to meeting the opportunities, and options for addressing those barriers. K&M used the information gathered from these three countries to evaluate changes influencing or creating new opportunities for deployment of US clean coal technology advanced power systems.
K&M, along with Sub-contractor Tata Consulting Engineers (India), was engaged by US DOE to conduct a technical and financial feasibility study and developed business plans for commercial deployment of the Integrated Gasification Combined Cycle (IGCC) advanced technology in India. Two proposed projects consisting of a gasification island and a power island were evaluated: 1) a 150 MW IGCC facility fueled with Indian coal, and 2) a 250 MW IGCC facility fueled with Indian lignite, both to be located in the state of Gujarat, India. Two financing approaches were evaluated: 1) a government-sponsored infrastructure project backed by the full faith and credit of the Government of India, and 2) a privatized project utilizing either a BOO or BOT concept and financed on a limited- or non-recourse basis. In addition, K&M hosted a study tour to the United States for senior executives of a local Indian private power utility to meet with IGCC experts.
K&M was engaged by a US company THERMOCHEM Incorporated under a Subcontract Agreement to assist them in performing a Feasibility Study for an Indian sugar producer, Ajinkyatara Cooperative who considered developing a 30 MW cogeneration plant. K&M estimated plant’s performance characteristics and prepared cost estimate as well as financial model to estimate the tariffs to be charged for steam and electricity and return on investment.
K&M served as Privatization and Institutional Reform consultants to the Government of India (GoI) for this USAID-sponsored program supported by the World Bank. Over a five-year period, K&M provided a full range of advisory services covering institutional, legal, regulatory, technical and financial issues for power sector reform in order to promote efficiency and attract private sector investment. K&M structured the India Private Power Initiative (IPPI) to foster development of private power projects on an economically viable, environmentally sustainable and technologically sound basis. Acting through the Investment Promotion Cell of the Ministry of Power, K&M provided assistance to the Power Finance Corporation, Central Electricity Authority, State Electricity Boards, and other governmental agencies. This comprehensive program was designed to build in-country capabilities to evaluate, process, and independently negotiate a myriad of private power project proposals pending before local, regional, and national government agencies.
K&M service as Owner’s Engineer to Coastal Power who was developing a 200 MW Basin Bridge Power Project on an IPP basis in Tamil Nadu, India. The project utilized 4×50 MW low speed 2-stroke diesel engines. K&M conducted a comprehensive engineering due diligence evaluation of the raw sewage water treatment system and power generating facilities. The scope of the facility included the power plant and the sewerage treatment facility. Water from the sewerage treatment facility would be used as a water source for the power plant. As a result of the due diligence review, K&M concluded that the basic process design presented for the STP and certain issues concerning the power generating plant required modifications, and advised Coastal Power to consider a revised process which would better meet the requirements of the power plant.
Ahmedabad Electricity Company (India) engaged K&M as the Owner’s Engineer for development and implementation of the proposed IGCC project at the Sabarmati Thermal power Station. This assignment was a follow-up to the previously performed assignment where K&M under the contract with US DOE conducted a pre-feasibility study for constructing a nominal 150 MW IGCC plant at AEC’s Sabarmati Thermal Power station using coal. K&M developed conceptual preliminary design, estimated the Engineering, Procurement, and Construction (EPC) costs, assessed the environmental impact of the project, developed financing plans, and established the Cost of Electricity (COE) generation. K&M then prepared the Detailed Project Report which included equipment specifications and the necessary documents required by lending institutions for financing the project, and subsequently, providing Construction Management for the Project.
K&M served as Lender’s Engineer to the Global Environment Fund on behalf of a private investor seeking to acquire, own and operate the 515 MW Gas Fired Combined Cycle Hazira Power Project in Gujarat, India. Owned by Essar Power Company, Hazira entered into combined cycle commercial operation in 1997, and was India’s first Independent Private Power Project (IPP). Structured as a hybrid IPP, the major offtakers were the Gujarat Electric Board (300 MW) and Essar Steel Limited (215 MW). K&M completed a due diligence evaluation to verify the technical, commercial and financial status of the plant. K&M reviewed the Project Agreements, EPC Contact, O&M Agreement, Financial Model, and technical, environmental, and financial characteristics of the project to ensure that the project risks are properly addressed and that technical and cost assumptions used in the Financial Model are reasonable. As a result of their review, K&M made recommendations for upgrades to improve efficiency and emissions.