The Solar Energy Corporation of India (SECI) has invited bids from developers for the assured peak supply of 8,000 MWh (2000 MW x 4 hours) of renewable energy from inter-state transmission system (ISTS)-connected projects under tariff-based competitive bidding (FDRE-VI).

The power supply must begin within 24 months of signing the Power Purchase Agreement (PPA).

The last day to submit the bids is October 14, 2024. Bids will be opened on October 17.

Bidders must pay a document fee of ₹50,000 (~$595) and a bid processing fee of ₹20,000 (~$238) per MW. They must also submit an Earnest Money Deposit (EMD), calculated based on the total installed capacity they commit to. The formula for the EMD is:

EMD = [₹942,000 (~$11,222) x installed solar capacity (MW)] + [₹1.29 million (~$15,368) x installed wind or other renewable capacity (MW)] + [₹341,000 (~$4,062) x energy storage capacity (MWh)].

Successful bidders must furnish a Performance Bank Guarantee (PBG) as a security deposit, calculated using the following formula:

PBG = [₹2.35 million (~$27,996) x installed solar capacity (MW)] + [₹3.24 million (~$38,599) x installed wind or other renewable capacity (MW)] + [₹852,500 (~$10,156) x energy storage capacity (MWh)].

The PBG must be submitted before signing the PPA.

Selected bidders must pay success charges of ₹100,000 (~$1,191) per MW of contracted capacity to SECI to cover administrative costs, project monitoring, and coordination with state authorities.

The buying entity will select four daily peak hours, starting from non-solar hours, to draw energy from the project. It must offtake energy daily, scheduling peak power supply as needed, with a mandatory supply of 4 MWh per 1 MW of contracted capacity during peak hours. A developer failing to meet the required energy supply during peak hours (up to 400 MWh for each 100 MW capacity) will face a penalty of 1.5 times the PPA tariff for the shortfall.

Bidders with existing or under-construction renewable energy or storage projects with untied capacity can also participate. They will receive a longer PPA term, proportional to the difference between the actual supply start date and the scheduled commencement date.

Each bidder, including its parent companies or affiliates, must submit a single bid offering a minimum of 50 MW and a maximum of 1,000 MW of cumulative contracted capacity. Projects can be located anywhere in India, with renewable energy components (including storage) either co-located or at different sites. These components can connect to the ISTS network at various substations.

SECI allows partial commencement of power supply from projects, with a minimum accepted capacity of 50 MW for the first and subsequent phases, with the final phase fulfilling the remaining contracted capacity.

Wind turbine models must be certified and listed in the Ministry of New and Renewable Energy’s Revised List of Models and Manufacturers, and solar modules must come from the  Approved List of Models and Manufacturers.

The minimum net worth required is:

Net worth = [(₹9.42 million (~$112,228) x solar capacity) + (₹12.98 million (~$154,641) x wind or other renewable capacity) + (₹3.41 million (~$40,626) x energy storage capacity)].

Bidders must have a minimum annual turnover of ₹6.18 million (~$73,627) per MW of the contracted capacity.

JSW Neo Energy, Hero Solar Energy, Vena Energy, Hexa Climate Solutions, and Serentica Renewables won SECI’s Tranche IV firm and dispatchable renewable energy auction.

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