SECI’s New Solar Tender for 3 GW with 1.5 GW of Manufacturing Comes with a Tariff Cap of ₹2.75/kWh

Minimum capacity for bidding is 1 GW of solar capacity linked with 500 MW of solar manufacturing


The Solar Energy Corporation of India Ltd. (SECI) has now issued a detailed Request for Selection (RfS) for the tender announced yesterday for 3 GW of ISTS-connected solar capacity linked with 1.5 GW of manufacturing.

The minimum capacity for bidding will be 1,000 MW of solar capacity linked with 500 MW of solar manufacturing. A single bidder can bid for the entire capacity. The bid-submission deadline is March 18, 2019 and the pre-bid meeting will be held on February 13, 2019.

The manufacturing unit and the solar PV projects will be developed on build own operate (BOO) basis. SECI will enter into power purchase agreement with the successful bidders for the purchase of solar power for a period of 25 years. The maximum tariff payable to the project developer is fixed at ₹2.75 (~$0.039)/ kWh for 25 years.

Any excess generation over and above the 10 percent of the declared annual capacity utilization factor will be purchased by SECI at a fixed tariff of 75 percent of the PPA tariff.

The scope of work includes the setting up the manufacturing unit and the solar PV projects, as well as the transmission network up to the interconnection or delivery point. The tender has been prepared in line with the solar bidding guidelines which were issued by the Ministry of Power in August 2017.

Earlier in May 2018, SECI had tendered 5 GW of manufacturing capacity linked to ISTS-connected solar projects for an aggregate capacity of 10 GW. This was later reduced to 3 GW where the developers were to be provided guaranteed PPAs of 2,000 MW for a manufacturing capacity of 600 MW, therefore the total power projects awarded would have remained at 10 GW.

This tender, however, is on the verge of being cancelled, according to various market sources, amid tepid response from developers. SECI hasn’t come out with a final communication regarding the fate of this tender.  Meanwhile, it has issued a fresh tender with a decreased manufacturing component.