Solar Energy Corporation of India Limited has issued a new Request for Selection (RfS) to develop Inter-State Transmission System (ISTS)-connected renewable energy projects under a scheme called SECI-CfD-I. This initiative focuses on ensuring a reliable power supply during peak demand hours by using a Contract for Difference (CfD) mechanism. The total targeted supply under this tender is 1500 MWh, which is planned as 500 MW capacity for 3 hours daily.
Under this model, developers will set up projects on a Build-Own-Operate (BOO) basis. SECI will act as the central agency to manage the CfD pool and handle financial settlements. The selected developers will sign agreements for a period of 12 years and will supply electricity through Indian Power Exchanges during non-solar hours, mainly in the evening. The required supply is 3,000 kWh per MW of contracted capacity each day during peak hours, typically between 6:00 PM and midnight.
To reduce risks related to price fluctuations in the power market, a stabilization fund of INR 76 crore has been created. This fund will cover the difference between the Market Clearing Price (MCP) and a fixed Strike Price agreed under the CfD mechanism. This structure aims to provide revenue certainty to developers while maintaining market-based pricing.
The tender includes several financial requirements for bidders. The RfS document fee is set at INR 50,000 plus GST and is non-refundable. A bid processing fee of INR 20,000 per MW must also be paid, with a maximum cap of INR 20 lakh plus GST. In addition, bidders need to submit an Earnest Money Deposit (EMD), which varies depending on the technology used. For solar PV projects, the EMD is INR 9.68 lakh per MW, while for wind and other renewable sources, it is INR 13.68 lakh per MW. For energy storage systems, the EMD is INR 2.4 lakh per MWh.
Developers who are awarded projects must also provide a Performance Bank Guarantee (PBG) within 20 days of receiving the Letter of Award. The PBG is set at INR 24.2 lakh per MW for solar, INR 34.2 lakh per MW for wind and other renewable energy sources, and INR 6 lakh per MWh for storage components.
The guidelines allow flexibility in project development. Projects can be set up anywhere in India based on the developer’s choice. Each bidder, including its related entities, can bid for a minimum of 50 MW and a maximum of 125 MW. The scheme is technology-neutral, meaning developers can use any renewable energy source, and they are encouraged to include energy storage systems to meet the peak supply requirements. Additionally, developers are allowed to procure up to 25% of their annual energy from green markets or through bilateral agreements.
The bidding process follows a defined schedule. The RfS was issued on April 19, 2026. A pre-bid meeting will be conducted as per the details on the ISN-ETS portal. The bid submission deadline is 26th May 2026.
This tender is an important step toward improving grid stability in India. By combining renewable energy with storage and market-based mechanisms, SECI aims to ensure a steady and reliable power supply during high-demand evening hours.
Discover more from SolarQuarter
Subscribe to get the latest posts sent to your email.
