SECI Floats 1.5 GW Solar Tender Under Second Phase of CPSU Program

The Solar Energy Corporation of India (SECI) has issued a tender for the selection of solar power developers to develop of 1,500 MW of solar photovoltaic (PV) projects under the second phase of the Central Public Sector Undertaking (CPSU) program (Tranche-II).

The last date for bid submission is August 23, 2019.

The tender would include mini and micro grid projects.  The power generated from these projects is expected to be procured by the government for self-use, either directly or through distribution companies on the payment of mutually agreed usage charges of not more than ₹3.50 (~$0.050)/kWh, which should be exclusive of any other third party charges like wheeling and transmission, point of connection, and cross-subsidy surcharges.

The minimum capacity that can be awarded to a bidder will be 1 MW and the maximum allocation to a single bidder will be 1,500 MW. The projects can be developed anywhere in the country. The tender mandates domestic content requirement, which means that cells and modules deployed in projects under this tender should be manufactured locally. The projects may be implemented as ground-mounted, rooftop, floating/canal-top or a combination of these depending on the requirements of the developer.



A commissioning timeline of 24 months from the date of the letter of allotment has been allowed to the developers. The maximum permissible limit for VGF has been kept at ₹7 million (~$0.10 million)/MW for these projects. The maximum time period allowed for the commissioning of the full project capacity is limited to 30 months from the date of issuance of the letter of award.

In March 2019, SECI issued a Request for Selection (RfS) for setting up 2,000 MW of grid-connected solar PV power projects (Tranche-I) under the second phase of the Central Public Sector Undertaking (CPSU) program in which the projects will be developed on Build-Own-Operate basis. In July 2019, SECI amended a provision in the tender and allowed for the inclusion of micro and mini grid-connected projects in the ambit of this tender. Recently, Mercom reported that this tender was undersubscribed  932 MW.

Recently, the President of India accorded his approval to implement phase-II of the CPSU program to set up 12,000 MW of grid-connected solar power projects for self-use or use by government entities.

The program was proposed by the Ministry of New & Renewable Energy (MNRE). Under this, the government producers will get four years: 2019-2020 to 2022-23, to set up 12,000 MW of solar power projects.

Image credit: Vector Green