The Solar Energy Corporation of India (SECI) has released the Request for Selection (RfS), SECI-FDRE-V, signaling a significant opportunity for Renewable Energy (RE) Power Developers to contribute to India’s sustainable energy landscape. The RfS calls for proposals to supply 1,000 MW of Firm and Dispatchable RE power from ISTS-connected RE Power Projects in India through Tariff-based Competitive Bidding.
SECI’s objective is to establish ISTS-connected RE Projects in a demand-following manner, encouraging developers to participate on a Build-Own-Operate (BOO) basis. The selected developers will enter into a Power Purchase Agreement (PPA) with SECI for a 25-year term, based on the terms and conditions outlined in the RfS and PPA.
The power procured through this initiative is earmarked for sale to the Punjab State Power Corporation Limited (PSPCL). SECI will act as an intermediary nodal agency, facilitating the procurement and sale of power on a back-to-back basis. This ensures a seamless process contingent on the due performance of both the RE Power Developer (RPD) and the Buying Entity (PSPCL).
Bidders are granted the freedom to leverage fiscal incentives, such as Accelerated Depreciation, Concessional Customs and Excise Duties, and Tax Holidays, without influencing the bid evaluation process. SECI emphasizes that equal opportunities are provided to all bidders during the tendering stage, allowing developers to independently avail various tax benefits. However, SECI does not guarantee the availability of fiscal incentives, and the bid submission is independent of their availability.
Existing RE project developers with untied capacity or those in the process of constructing projects are eligible to participate. Bidders with signed PPAs with designated Renewable Energy Implementing Agencies or State-owned Distribution Companies as of the bid submission deadline are not allowed to terminate such agreements and participate in this RfS.
The bidding process will adopt a Single Stage, Two-Envelope Bidding Procedure, involving e-bidding followed by an e-Reverse Auction. The selection process will be governed by the RfS Documents/Agreement signed between SECI and the RPD for the Project.
Under this RfS, the RPD is responsible for setting up ISTS-connected RE Power Projects, including the transmission network up to the Interconnection/Delivery Point(s), at their own cost. The scope also includes land identification, installation, and ownership of the project, along with obtaining connectivity, necessary approvals, and interconnection with the ISTS network/STU or InSTS network (as applicable) for power supply to SECI.
The technology selection for the RE Power Projects is agnostic, emphasizing diversity in renewable energy solutions. The selection process for a total Contracted Capacity of 1,000 MW will involve e-bidding and e-Reverse Auction.
RE Projects are mandated to be designed for interconnection with the ISTS substation at a voltage level of 220 kV or above. Energy Storage Systems (ESS) are a mandatory component of the Project. ESS, if charged using a source other than RE power, would not qualify as RE power. The RPD has the flexibility to change the ESS technology during the term of the PPA at their risk and cost.
Bidders, including their parent, affiliate, or ultimate parent companies, are required to submit a single bid offering a cumulative Contracted Capacity between 50 MW and a maximum of 500 MW. Project locations can be anywhere in India, with flexibility in co-locating or situating RE generation components and ESS at different locations.
In case of delay in commencement of power supply beyond the Scheduled Commencement of Supply Date (SCSD), penalties will be imposed, and the Performance Bank Guarantee (PBG) shall be encashed on a per-day basis.
Selected Bidders will pay Success Charges to SECI, and the Payment Security Mechanism (PSM) requires the RPD to pay PSM Charges for coverage.
The Pre-Bid Meeting is scheduled for December 11, 2023, and the Document Sale End Date is on January 9, 2024. Bid Submission closes on January 11, 2024, followed by Bid Open Date on January 12, 2024. This initiative reflects SECI’s commitment to advancing renewable energy projects and fostering a sustainable energy future for India.
Please view the document below for more details.
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