SECI Secures Approvals For Tariffs Through Competitive Bidding On 600 MW Solar PV Power Projects

The Solar Energy Corporation of India Limited (SECI) recently submitted a petition under the Electricity Act, 2003, seeking the adoption of tariffs for solar PV power projects connected to the Inter-State Transmission System (ISTS). These projects, totaling 600 MW and categorized as Tranche-XI, were chosen through a competitive bidding process following guidelines issued by the Ministry of Power, Government of India.

SECI initiated the bidding process in March 2023, receiving fourteen bids totaling 5,050 MW. Ten bidders were shortlisted for the subsequent e-reverse auction, where six bidders offering 2,000 MW were selected and issued Letters of Award. SECI subsequently entered Power Purchase Agreements (PPAs) with SAEL SOLAR MHP1 Private Limited, SAEL SOLAR MHP2 Private Limited, and Gujarat Urja Vikas Nigam Limited for 600 MW capacity at ₹2.60/kWh and ₹0.07/kWh trading margin.

The petition also requested an urgent listing, highlighting a deadline of June 30, 2025, for projects to commence operations to qualify for a waiver of ISTS charges for 25 years. Respondents including GUVNL and SAEL Industries Limited (SIL) expressed no objections to the proposed tariff adoption.

The evaluation committee certified that the bidding process adhered to the guidelines without deviations. SECI, designated as the nodal agency, facilitated the bidding process and is responsible for implementing MNRE Schemes for renewable energy projects.

As of the filing, SECI secured PPAs for 600 MW but is in the process of finalizing agreements for the remaining capacity. The Commission’s decision to adopt tariffs is contingent upon signed PPAs and PSAs.

SECI requested approval for a trading margin of ₹0.07/kWh, which was agreed upon in PSAs with distribution companies. However, failure to provide security mechanisms may limit the trading margin to Rs. 0.02/kWh. In conclusion, the Commission ruled in favor of adopting tariffs for the tied-up capacity of 600 MW, allowing SECI to approach for the remaining capacity once agreements are finalized. The decision also emphasized adherence to payment security mechanisms outlined in the PPAs and PSAs.

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