SECI Auction Sets Record Tariffs For 500 MW Of 1.2 GW ISTS Solar Projects With SAEL, NTPC REL, And Blupine

The Solar Energy Corporation of India (SECI) recently concluded its auction for 1,200 MW of Inter-State Transmission System (ISTS) XVI solar power projects, achieving a significant milestone with highly competitive tariffs. The auction attracted participation from prominent renewable energy companies, including SAEL Industries, NTPC Renewable Energy Ltd. (NTPC REL), and BluPine Energy.

Three companies—SAEL, NTPC REL, and BluPine Energy—emerged as successful bidders. They secured projects at record tariffs of ₹2.48 per kWh (SAEL and NTPC REL) and ₹2.49 per kWh (BluPine Energy). NTPC REL won bids for 200 MW, SAEL secured 250 MW, and BluPine Energy obtained 50 MW. Notably, out of the planned 1,200 MW capacity, only 500 MW was auctioned.

SECI had initially issued the tender in May for the development of these ISTS-connected solar power projects across India, using a Tariff-Based Competitive Bidding approach. SECI plans to enter into a 25-year Power Purchase Agreement (PPA) with the selected bidders, as outlined in the Request for Selection (RfS) and the PPA.

Bidders were allowed to propose project capacities ranging from a minimum of 50 MW to a maximum of 600 MW. They were also required to declare the annual Capacity Utilization Factor (CUF) for their projects during bid submission. A revision of the CUF is permitted once within the first year of commencing power supply. SECI has also allowed part commencement of power supply, with a minimum capacity of 50 MW for each part, without altering the Scheduled Commercial Operation Date (SCOD). The PPA will remain valid for the entire 25-year period, regardless of the full or partial commencement of power supply.

The results of this auction highlight the intense competition among renewable energy developers, with bids coming in at close margins. The competitive tariffs are reflective of the broader trend of declining solar energy costs in India, underscoring the viability and affordability of solar power. This auction marks a crucial step toward achieving India’s renewable energy goals, showcasing the strong interest and commitment of key players in the solar sector.