The Solar Energy Corporation of India (SECI) has increased the tariff ceiling for its 500 MW (phase 1) solar tender that it had floated earlier this year by ₹0.08 (~$0.001)/ kWh.

The amended tariff cap is ₹2.93 (~$0.04)/kWh against the previous tariff of ₹2.85 (~$0.041)/ kWh for 25 years.

In April 2019, SECI had issued an RfS for 500 MW of grid-connected solar PV projects in Tamil Nadu on Build Own Operate (B-O-O) basis. Later, it had extended the bid submission date from May 27, 2019, to June 27, 2019. The extension was announced due to a tepid response from the developers.

Tamil Nadu Generation and Distribution Corporation Limited (TANGEDCO) will be the power procurer for these grid-connected solar projects.

Adding to the earlier tender, which stated that the projects were to be set up only in the state of Tamil Nadu, the amendment now says that the projects are to be connected to the CTU (central transmission utility) substations and will be allocated in multiples of 10 MW with minimum project capacity being 50 MW. For state transmission utility substations, the projects will be awarded in multiples of 10 MW with minimum project capacity, also at 10 MW.

Adding to the clause of connecting the commissioned projects to the grid, it is clarified that since the projects are to be located within Tamil Nadu, the state government will provide the necessary support to facilitate the connectivity of the project to the substation.

If the tender is undersubscribed, 80% of the bid capacity could be awarded. The amendment has added detail that in such a case, the total would be rounded off to the next higher multiple of 10.

The latest amendment states that the successful bidders will have to pay ₹100,000 (~$1,416)/ MW/project along with 18% GST towards administrative overheads to SECI. It also mentions that the selected developers will have to furnish a payment security deposit of ₹500,000 ($7,080)/MW/project. This fund will be a part of the Payment Security Fund maintained by SECI for the projects.

Referring to the partial capacity that would be allotted to the last bidder, the new amendment adds that the last selected bidder after the close of the auction will be eligible for award of a partial capacity, if the bidder agrees to match the lowest (L1) tariff discovered in the auction to win the entire quoted project capacity at the L1 tariff. The last bidder has to inform SECI about this within three working days from date of completion of the auction.

In May 2019, the Tamil Nadu Generation and Distribution Corporation (TANGEDCO), the state DISCOM, handed over the responsibility of managing solar and wind tenders to SECI.

Image credit: Axium Solar

Anjana is a news editor at Mercom India. Before joining Mercom, she held roles of senior editor, district correspondent, and sub-editor for The Times of India, Biospectrum and The Sunday Guardian. Before that, she worked at the Deccan Herald and the Asianlite as chief sub-editor and news editor. She has also contributed to The Quint, Hindustan Times, The New Indian Express, Reader’s Digest (UK edition), IndiaSe (Singapore-based magazine) and Asiaville. Anjana holds a Master’s degree in Geography from North Bengal University, and a diploma in mass communication and journalism from Guru Ghasidas University, Bhopal.