India's SECI Completes 6GWh Peak Power Tender, Three Companies Selected

en.Wedoany.com Reported - On August 21, India's Solar Energy Corporation of India (SECI) completed the electronic reverse auction for the FDRE-IX project, finalizing the selection results for the procurement of 1,500 MW/6,000 MWh assured peak power. Waaree Forever Energies secured a contracted capacity of 700 MW at a winning tariff of INR 5.99/kWh; NTPC Renewable Energy Limited secured 500 MW at INR 6/kWh; and ACME Solar Holdings secured the remaining 300 MW at the same tariff of INR 6/kWh. The corresponding 4-hour assured supply capacities for the three companies are 2,800 MWh, 2,000 MWh, and 1,200 MWh, respectively.

The tender was launched on June 5 with an initial capacity of 1,200 MW/4,800 MWh. On July 8, SECI revised the tender terms, increasing the procurement capacity to 1,500 MW and correspondingly expanding the daily 4-hour peak power supply to 6,000 MWh; the cumulative contracted capacity cap for a single bidder and its affiliates was also raised from 600 MW to 750 MW. The project adopts a tariff-based competitive bidding approach, with final tariffs determined through an electronic reverse auction.

Selected developers are required to develop renewable energy projects connected to India's Inter-State Transmission System (ISTS) under a Build-Own-Operate (BOO) model, with energy storage systems integrated. SECI's tender documents require that storage must be an integral part of the project, with renewable energy generation facilities and storage systems co-located within a single project, though no specific technology routes for generation or storage are mandated. Developers are also responsible for land, project construction, grid interconnection facilities, and transmission networks up to the delivery point, as well as obtaining all necessary approvals and grid connectivity conditions for project implementation.

The core power supply requirement of this tender focuses on non-solar hours. The power purchaser may select 4 hours of electricity consumption within the window starting from the evening non-solar period to the end of the morning non-solar period the next day, with each 1 MW of contracted capacity required to supply 4 MWh of electricity daily, and a maximum hourly supply requirement of 1 MWh/MW. Based on the 1,500 MW contracted capacity, all projects must deliver 6,000 MWh of assured peak power supply daily. Shortfalls in supply will incur corresponding liability for breach of contract as stipulated in the power purchase agreement.

The power procured by SECI is planned to be sold to West Bengal State Electricity Distribution Company Limited, Kerala State Electricity Board Limited, and other power purchasing entities in India. Selected developers will subsequently sign power purchase agreements with SECI, with a term of 25 years from the scheduled commencement date of power supply; the scheduled commencement date of power supply for the full contracted capacity of the project is 18 months after the PPA becomes effective. Projects may commence supply in phases, with the first and subsequent phases in principle not less than 50 MW each, and the final phase may consist of the remaining contracted capacity.

Once projects enter the execution phase, developers are required to achieve financial closure 6 months prior to the scheduled commencement date of power supply, secure all project financing arrangements, and submit technical and procurement documentation for major equipment such as solar modules, inverters, wind turbines, and energy storage systems to SECI. The capacity, manufacturer, equipment model, and procurement agreements for the energy storage system must also be finalized during this phase.

ACME Solar Holdings stated after selection that its 300 MW project has already obtained the required grid connectivity approvals and secured most of the land needed for the project. Under the 4-hour daily supply requirement, the project will create 1,200 MWh of assured peak power supply capacity. NTPC Renewable Energy Limited confirmed that its 500 MW contracted capacity corresponds to a winning tariff of INR 6/kWh. With the full allocation of this round's 1,500 MW capacity, FDRE-IX will transition into the stages of selection notification, PPA signing, financing, and project development.