SECI Invites Bids For 2000 MW Solar Projects With 4000 MWh Storage To Boost India’s Renewable Push (ISTS XX)

The Solar Energy Corporation of India (SECI) has released a new Request for Selection (RfS) on June 12, 2025, inviting bids from developers to set up 2,000 MW of ISTS-connected solar photovoltaic (PV) power projects integrated with 1,000 MW/4,000 MWh of Energy Storage Systems (ESS). The projects are to be developed on a Build-Own-Operate (BOO) basis and will follow a tariff-based competitive bidding process. This initiative aims to enhance renewable energy capacity and ensure a firm, dispatchable power supply across India.

The scope of the project includes the installation of solar PV technology along with a co-located ESS component. The minimum storage requirement is 0.5 MW/2 MWh per 1 MW of solar capacity. The total contracted capacity per bidder is capped at 1,000 MW, with a minimum bid size of 50 MW in multiples of 10 MW. Bidders can propose projects in locations of their choice, ensuring connectivity with the ISTS network or, where relevant, the InSTS network, based on the location of the buying entities.

The solar power generated under this scheme, including the energy discharged from ESS charged using solar, will be considered for Renewable Purchase Obligation (RPO) compliance. The ESS component will also help meet Energy Storage Obligations (ESO) as defined by government notifications. The buying entity is mandated to offtake energy during peak hours, with developers required to supply 2,000 kWh of energy per MW contracted capacity on a daily basis during four-hour peak windows.

Key financial conditions have also been outlined. The Earnest Money Deposit (EMD) is set at ₹14,24,000 per MW per project, which must be submitted in the form of a bank guarantee, POI (Payment on Order Instrument), or surety bond. Additionally, selected bidders must furnish a Performance Bank Guarantee (PBG) of ₹35,60,000 per MW before signing the Power Purchase Agreement (PPA), which will be valid for 12 months beyond the Scheduled Commissioning Date (SCSD). The SCSD is 24 months from the effective date of the PPA, with a six-month grace period allowed, though it comes with proportional encashment of the PBG in case of delays.

The solar projects can be partially commissioned, with each phase requiring a minimum of 50 MW solar capacity and a proportionate ESS component. Part commissioning does not affect the SCSD. Early commissioning is allowed at the developer’s risk, subject to transmission connectivity availability. If the buying entity or SECI agrees to purchase early power, it will be at the PPA tariff. Otherwise, the developer may sell the power on exchanges, giving the buying entity and SECI the first right of refusal.

SECI will serve as the intermediary nodal agency for power procurement and resale to buying entities, with power purchase agreements valid for 25 years. The projects are expected to contribute significantly to India’s renewable energy goals by enhancing solar power capacity while also addressing the challenges of energy intermittency through integrated storage systems. This step underlines India’s growing commitment to clean energy and grid reliability.