SECI Issues Tenders for Setting Up 2.4 GW of Solar Projects Connected to ISTS Network

The upper tariff ceiling is set at ₹2.65 (~$0.038)/kWh


The Solar Energy Corporation of India (SECI) has issued two requests for proposals (RfS) to set up ISTS-connected solar projects totaling 2.4 GW on Build-Own-Operate (BOO) basis.

Under the ISTS-V, it has issued a Request for Selection (RfS) for developers to set up 1,200 MW of the interstate transmission system (ISTS) -connected solar photovoltaic (PV) projects to be developed anywhere in the country.  The projects are to be developed under global competitive bidding. The upper tariff ceiling has been set at ₹2.65 (~$0.038)/kWh for this tender. The bid submission deadline is July 31, 2019, with the opening of techno-commercial bids on the same day. There is a pre-bid meeting slotted for July 11, 2019.

The other tender issued by SECI is for the selection of solar developers to set up 1,200 MW of solar PV projects connected to the designated ISTS network in Madhya Pradesh under tariff-based competitive bidding (ISTS-VI). The tariff ceiling for this tender has also been capped at ₹2.65 (~$0.038)/kWh. The bid submission deadline for this tender is August 9, 2019.

Both the tenders mention that the land, connectivity, and long-term open access (LTOA) are within the scope of the project developer.

The Earnest Money Deposit has been mentioned as ₹400,000 ($5,800)/MW, per project, to be furnished by bidders in the form of bank guarantee(BG).

SECI shall enter into a power purchase agreement (PPA) with the successful bidder for 25 years.

The projects need to achieve financial closure within 12 months and have to be completed within 18 months from the effective date of the PPA. The maximum time allowed for the commissioning of the full project capacity is 24 months.

The bidders are allowed to avail fiscal incentives like accelerated depreciation, concessional customs and excise duties, tax holidays as available for such projects.

Crystalline silicon or thin film or concentrated PV, with or without trackers can be installed, with only commercially established and operational technologies. The cells and modules used in the project have to be sourced only from the manufacturers included in the “Approved List of Models and Manufacturers” as published by Ministry of New and Renewable Energy (MNRE) and updated as on the date of commissioning of the project.

The projects may consist of any number of blocks, each in multiples of 10 MW with a minimum capacity of each block being 20 MW.

In a recent announcement, SECI revamped and reissued the manufacturing linked solar tender which it had initially floated in January 2019.