SECI’s 1.2 GW Solar Tender Gets Enthusiastic Response, Oversubscribed by 2.3 GW

The Solar Energy Corporation of India (SECI) has announced the list of participants for its tender for 1.2 GW of solar projects.

In January 2020, SECI had issued a detailed request for selection documents to set up 1,200 MW of interstate transmission system (ISTS) connected solar projects. Though the tender was announced in December 2019, the details were made available only in January.

The list of participants includes ReNew Power, Softbank, Avaada, O2 Power, Brookefield, Eden, Tata, Ayana, and IB Solar. The tender was floated for 1.2 GW but was oversubscribed by 2.3 GW.

ReNew Power and Softbank bid for 600 MWs each, whereas Avaada bid for 500 MW and the remaining six companies bid for 300 MW each, totaling 1.8 GW.

SECI - 1.2 GW ISTS (Tranche-VIII) Solar PV Projects

The installation of the solar PV power projects will be on a build-own-operate (BOO) basis under tranche VIII of the ISTS program.

A few days back, SECI amended the power purchase and sale agreement (PPA and PSA) for this 1,200 MW solar tender, adding another point to the existing ‘change in law’ clause. The additional clause states that in case of a change in the law on account of anti-dumping duty or safeguard duty or customs duty on solar photovoltaic (PV) modules, the solar power developer will be entitled to either an increase or decrease in the tariff. This increase or decrease in tariff will be for an amount equivalent to ₹0.05 (~$0.00070)/kWh for every increase or decrease of ₹100,000 (~$1,402) of impact on the cost of solar PV modules.

Recently, Greenko Group and ReNew Power won the auction conducted by SECI for 1.2 GW of solar, wind, and energy storage projects with guaranteed peak power supply. While Greenko was awarded 900 MW, ReNew Power won 300 MW of projects. Greenko Group won the bid at a peak power tariff rate of ₹6.12 (~$0.086)/kWh, and ReNew Power won at ₹6.85 (~$0.096)/kWh. As reported by Mercom previously, this SECI tender was also oversubscribed by 420 MW.  Greenko had bid for 900 MW, ReNew Power bid for 600 MW, and HES Infrastructure bid for 120 MW capacity. The total capacity that was bid for totaled 1,620 MW while the tendered capacity was 1,200 MW.

According to Mercom’s India Solar Tender Tracker, SECI has tendered nearly 12.2 GW under ISTS (Tranche I to Tranche VIII) and has auctioned ~7.64 GW under ISTS Tranche I to VII.

Image credit: EDF Renewables