A day goes by in a week and I get call, inquiring the fuzz about power evacuation in Gujarat. Is it like Rajasthan? Why many solar PV power project in Gujarat are in “ready to be commission state” but yet not commissioned? Is ROW a big issue in Gujarat? What’s this? Is it big issue?
Trying to answer those questions…
- Preface:
As per the 2010/11 PPA signed by all solar PV power project developer who got allotment in Gujarat part of Phase I and Phase II, government of Gujarat obligated GETCO to provide free of charge interconnection to the solar power project site up till 15 KM from the 66kv substation. If solar developer purchases land parcel more than 15 km distance from nearest 66KV/11KV substation, responsibility falls with solar Developer to complete the power evacuation by himself bearing all cost and expense associated with. Few of Gujarat solar developer trapped into that problem as executives of the company didn’t understood the complexity of power evacuation while finalizing the land parcel for the solar Power project besides absorbing high cost of right of way land from the local farmers for HT line installation.
- Let’s flashback:
Out of 84 Solar power project developers, more than 40 have finalized the land around august/ September time frame. More than 30 decided land in November.
- Revisiting PPA story and GETCO work on hand:
For promotion of solar industry, government became generous and hooked up GETCO with responsibility of providing free of cost interconnection to all solar PV power projects, though Government of Gujarat does not extend same generosity to wind power projects getting installed in Gujarat every day. Considering 40 solar developers with land in hand around September, with atleast 10 KM of power evacuation per Solar Power project site, boils down the complete work estimate to be of 400KM with timeframe of completion within 4 months, i.e. December 31st of last year.
- GETCO STORY:
With privatization move in the government of Gujarat to bring effectiveness and speed, GETCO now outsource power evacuation project work to private market via official tender process. Before floating any tender GETCO must have, exact location of the power exit point of each solar power plant, evacuation route for each power plant, capacity of the 66kv substation taking new power load and exact material to be procured and supplied to the sub-contractor for each solar power project site. Now with all 40 develop contacting GETCO to start evacuation at same time, how can someone expect GETCO to complete everything from getting all details from all solar project developers, finalizing evacuation plan for each, looking at power load at each substation with distribution company and then awarding a tender to private subcontractor in a month and then expect sub contractor to complete all ROW and installation be complete in next three month after? But though GETCO was super fast awarding contracts quickly and letting tender awardees to start the work by asking them to send material requirement timeline ASAP.
- GETCO Sub-contractor story:
It’s nowhere a cakewalk. For any power evacuation HT line implementation between solar power plant site and nearest 66KV station, there happens to be many hurdles like road crossing, water canal crossing, private farmer land retention or public land leasing. Once sub contractor finalizes final route plan for power evacuation, first thing they will check out the exact locations where steel structure to be erected to support HT line. This land procurement for installing structure on someone else’s property is called ROW (right of way). ROW always has lots of resistance from local farmer as well as different government bodies like village panchayat. There comes the right match of people skills and local environment understanding to get through the exact land require, at right place and with affordable price. Having land pricing soaring day in day out in Gujarat, getting ROW for sub-contractor has became damn difficult these days.
- GETCO comes back:
GETCO was very much known to time consumption process of procuring such a huge quantity of material from the vendors and ship it to the individual solar power project developer’s site. That’s the reason GETCO was calling all developers time to time to confirm the land location at the earliest, despite none actually provided any information about land. Bear in mind all Gujarat solar developers were tirelessly searching for source of funding those days, finalizing land requirement for solar power project and providing information in this regard to GETCO was last priority. As repeated attempt by GETCO to get land location identified by the solar developers went nowhere, finally GETCO alarmed it to GUVNL with inability to complete free power evacuation for most solar developer in time. Hence supplementary PPA came in picture.
- GUVNL comes into picture:
In late July, solar developers who had changed the land location (what they have mentioned earlier during signing of GUVNL PPA) were notified by GUVNL to sign supplementary PPA with a clause that passes the 100% interconnection responsibility on the shoulder of solar developer, where GETCO pays the money and provides all material, but work must have to be carried out by developer by hiring any sub-contractor from the open market. Inside that supplementary PPA clause, GUVNL explicitly clarified of no obligation to GETCO or GUVNL if power evacuation not completed on time for any hurdles to be faced by the solar project developer to complete the work. Hurdles.. Yes, delay in getting material supply, ROW issue, absorbing unimaginary high cost of work due to unavailability of GETCO approved sub contractor in the market, and many other small issues…
- The end:
Ultimately most solar project developer ended up in the fierce task management about getting sub-contractor for power evacuation, getting material issued on time from the GETCO which they haven’t stockpiled, getting ROW cleared for HT line beside all procurement and installation going on at the solar PV project site. Thus creating delayed feedback from every party involved, many sub contractor aren’t able to complete power evacuation facility on time and so this developers though their solar PV power project are completely installed as per record, are waiting for grid to be available. Solar Developers part of Solar Park story has same ending too, having issue with land and procurement of material even though that was GPCL’s (government enterprise) job.
As of this writing, leaving very few, most of the solar developers have not received project commissioned certificate till date. Though 21 (twenty one) projects are already started pouring electricity to the grid prior to end of January, that means out of 60 project that was commissioned or ready to be commissioned list that I posted in my last article, 39 developer either had no power evacuation line completed or ???????
English Proverb: The road to hell is always paved with good intentions.
Nilesh Patel is project consultant for solar PV and Solar Thermal power generation. He owns business Movya consultancy dealing in project consultancy, government liaison, Allotment, signed PPA/ Equity trading and Land banking. He is also independent freelancer expresses his understanding of current issues alike in various national and international magazines and newspaper. If you have questions on above article or business please contact him on Nilesh@movya.com. For his business visit http://www.movya.com/
