SECI’s 1000 MW Solar Project Advances With Competitive Tariff Adoption

The Solar Energy Corporation of India Limited (SECI) has initiated a petition for the adoption of a tariff for 1,000 MW of solar power projects under Tranche-XII. This initiative is part of a larger effort to enhance solar power capacity connected to the Inter-State Transmission System (ISTS). The petition has been filed under the relevant guidelines issued by the Ministry of Power, Government of India.

SECI released a Request for Selection (RfS) on October 13, 2023, which included a Standard Power Purchase Agreement (PPA) and Power Sale Agreement (PSA). This RfS invited proposals for the development of solar power projects. The primary goal was to procure solar power through a competitive bidding process that ensures transparency and fair pricing.

The bidding process saw the participation of nine bidders, offering a total capacity of 2,300 MW. Each bidder met the technical and commercial criteria outlined in the RfS documents. Subsequently, on December 20, 2023, SECI conducted the opening of financial bids via the ISN ETS e-bidding portal. Out of the nine bidders, seven were shortlisted for the e-reverse auction, which was also held on December 20, 2023. This auction determined the final tariff for the projects.

The successful bidders and their respective capacities are Avaada Energy Private Limited – 300 MW, Sprng Energy Private Limited – 250 MW, ReNew Solar Power Private Limited – 300 MW, and Solarcraft Power India 8 Private Limited – 150 MW. These companies were issued Letters of Award (LoA) on January 1, 2024, signifying their selection for the project. The total awarded capacity reached 1,000 MW, aligning with SECI’s target for this tranche.

The next step involved SECI entering into Power Purchase Agreements (PPAs) with the selected companies. These agreements outline the terms and conditions under which the power will be supplied. SECI also signed a Power Sale Agreement (PSA) with Uttar Pradesh Power Corporation Limited (UPPCL) for the entire 1,000 MW capacity on February 7, 2024. This agreement ensures that the generated power will be sold to UPPCL, facilitating the distribution of solar power within the state of Uttar Pradesh.

SECI further detailed that it had executed PPAs with Avaada GJ Green Private Limited (an SPV of Avaada Energy Private Limited) for 300 MW and with Sprng Power Earth Private Limited (an SPV of Sprng Energy Private Limited) for 250 MW by March 18 and March 27, 2024, respectively. SECI is in the process of finalizing similar agreements with ReNew Solar Power Private Limited and Solarcraft Power India 8 Private Limited for their respective capacities.

This entire process emphasizes SECI’s commitment to increasing solar power capacity in India through a competitive and transparent bidding process. By securing tariffs through e-reverse auctions and ensuring proper agreements are in place, SECI aims to bolster the country’s renewable energy infrastructure and contribute to sustainable energy goals.

The Central Electricity Regulatory Commission (CERC) is expected to adopt the tariff discovered through this competitive bidding process, thereby formalizing the agreements and allowing the projects to move forward. This step is crucial for maintaining the momentum in India’s solar energy sector and achieving the nation’s renewable energy targets.

Please view the document here for more details.