The Solar Energy Corporation of India (SECI) has invited bids to assess and aggregate demand for virtual power purchase agreement (VPPA)-based renewable energy procurement.

The information obtained through this tender will form the basis for designing subsequent VPPA tenders, including determining the procurement quantum, supply profiles (such as round-the-clock or peak-hour supply), contract duration, and payment security structures.

The last date to submit bids is May 15, 2026. Bids will be opened on the same day.

The VPPA operates as a Contract-for-Difference (CfD) structure, in which the difference between the market price at which electricity is sold and the agreed-upon strike price is settled financially between the generator and the consumer.

In addition to the financial settlement, the Renewable Energy Certificates (RECs) corresponding to the contracted capacity are transferred from the generator to the consumer. These RECs may be used by the consumer to comply with the Renewable Compliance Obligation (RCO) or other regulatory obligations.

This tender is open to a broad category of entities that are either obligated under the RCO framework or have a voluntary interest in procuring renewable energy attributes through VPPA arrangements.

Eligible entities include open access consumers, captive users, large commercial and industrial establishments, public sector undertakings, data centers, and other power-intensive consumers.

Bidders must indicate their tentative demand for VPPA-based procurement, including the proposed contracted capacity (in MW), the indicative minimum and maximum capacity ranges, the preferred commencement period, and the indicative contract duration.

Participants can also indicate their preferred supply profile, including broad preferences such as round-the-clock, peak-hour, or specific time blocks (e.g., evening peak).

Bidders must provide relevant regulatory information, including the applicability of RCO, compliance status, and the current mode of renewable energy procurement, such as open access, REC purchase, or other mechanisms.

Recently, SECI invited bids for a peak supply of 1.5 GWh (500 MW x 3 hours) from interstate transmission system (ISTS)-connected renewable energy projects across India under the CfD mechanism.

Earlier, SECI invited bids for the supply of 80 MW of firm power on a short-term basis under open access.

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