Solar Energy Corporation of India (SECI) has received bids totaling 1,200 MW capacity for setting up solar energy projects. The projects developed are to be connected with the interstate transmission system (ISTS) network under tariff-based competitive bidding (ISTS-VI). Once the projects are awarded, they will be developed on a build own operate (BOO) basis. Successful bidders in this tender will enter into Power Purchase Agreements (PPAs) with SECI for 25 years. The tariff for this tender had been initially capped at ₹2.65 (~$0.038)/kWh and later amended to ₹2.68 (~$0.037). Procuring land, connectivity, and long-term open access (LTOA) approval is within the scope of the project developer.
ReNew Power, UPC Renewables, Tata Power, and Avaada Energy were the participants in this tender. All of the companies submitted bids to develop 300 MW capacity each.
In September 2019, SECI had extended the bid submission date for this project. Earlier, the tender was issued for the state of Madhya Pradesh only, but later, it was open to being developed pan-India.
SECI’s solar tenders are struggling to attract robust interest from developers.
SECI’s tender for setting up 1.2 GW of solar photovoltaic projects under ISTS-V had been undersubscribed by 50%, receiving bids for only 600 MW of solar capacity. As the tender was undersubscribed, only 80% of the bid capacity could be awarded in line with the tender condition. Therefore, only a capacity of 480 MW was awarded out of the 1.2 GW capacity tendered.
According to Mercom’s India Solar Tender Tracker, SECI has tendered ~11 GW under the ISTS program (Tranche I to Tranche VII); and 5.5 GW has been auctioned (under ISTS-I-V) so far. SECI has also tendered 2.4 GW ISTS wind-solar hybrid projects, of which 1.56 GW has been auctioned (Tranche-I and II).
Recently, SECI issued a tender to procure 400 MW (2×200 MW) of renewable energy on round the clock basis. The energy procured through these projects will be supplied to the New Delhi Municipal Corporation (NDMC) and Dadra and Nagar Haveli. The projects developed under this tender can be constructed anywhere in India and will be connected to the ISTS network.
Image credit: Invenergy
Shaurya is a staff reporter at MercomIndia.com with experience working in the Indian solar energy industry for the past four years in various roles. Prior to joining Mercom, Shaurya worked with a renewable energy developer and a consulting company. Shaurya holds a Bachelors Degree in Business Management from Lancaster University in the United Kingdom.