The Solar Energy Corporation of India (SECI) has cancelled the undersubscribed 2 GW Tranche-V interstate transmission system (ISTS)-connected wind tender.

SECI had tendered the capacity in May 2018. Technical bids totaling 1,200 MW were received against the tendered capacity of 2 GW.

According to Mercom’s India Wind Tracker, ReNew Power, Adani Green, Sprng Energy, and Alfanar each had submitted technical bids for 300 MW.

When contacted, a SECI official said, “Due to less response, we have cancelled the 2 GW ISTS tender. We are returning the performance bank guarantee (PBG) of the bidders who had participated in the previous tender.”

“We have also modified the 2.5 GW of ISTS-connected wind tendered under Tranche-VI and have retendered 1.2 GW under Tranche-V. Tranche-V will now have 1,200 MW ISTS-connected wind projects,” added the SECI official.

The new bid-submission deadline is August 24, 2018.

The projects will be developed on build own operate (BOO) basis. The successful bidders will enter into Power Purchase Agreements (PPAs) with SECI for a period of 25 years. A single bidder can bid for a minimum 50 MW and maximum of 600 MW capacity, all other provisions are same as the previous tenders, the SECI official further said.

The scope of work includes the setting up of the wind power projects as well as the transmission network up to the delivery point.

Transmission issues are plaguing the renewable energy sector now. There is growing skepticism on whether India’s transmission infrastructure is equipped to handle the influx of new intermittent renewable power generation. The nation’s increasing renewable energy capacity has recently prompted a number of states to propose deviation charges anticipating challenges in integrating intermittent renewables onto the grid.

This has resulted in reduced developer interest, which in turn is forcing implementing agencies to rethink tenders. Now, instead of 4.5 GW that SECI had tendered for two tranches, it will issue a single tender for 1.2 GW.