India continues with its aggressive timeline to issue tenders and hold auctions for large volumes of solar and wind energy capacities. As per a pre-defined timeline to issue tenders, the Solar Energy Corporation of India (SECI) issued the largest wind energy tender and the first-ever hybrid solar and wind energy tender at the federal level late last month.
SECI issued three tenders between June 22nd and June 30th, 2018, that offered a total of 8 gigawatts capacity in wind and solar power technologies. The first tender offered 2.5 gigawatts of solar-wind hybrid capacity. This is the first such tender, and the largest of its kind, in India history.
Developers will have to set up solar as well as wind energy projects. The minimum capacity developers can bid for is 200 megawatts, with 50 megawatts to be set up on a single site, while the maximum bid can be made for 500 megawatts. The maximum financial bid allowed is Rs 2.93/kWh (2.48¢/kWh).
As per the terms of the tender, the rated capacity of either of the technologies should be more than 25% of the rated capacity of the other technology.
The second tender is the largest solar power tender ever issued in India’s history. SECI will offer 3 gigawatts of capacity in this tender. This is the third tender of its kind issued by SECI — it has already issued two such tenders with 2 gigawatts capacity each, with one of them already awarded at record low tariff.
The maximum financial bid allowed is Rs 2.93/kWh (2.48¢/kWh), and the maximum capacity bid allowed is 1.8 gigawatts. SECI mentions a list of sites and sub-stations which can be used by the project developers to set up projects, however, they are practically free to choose their own sites.
The third tender is the largest wind energy tender ever to be issued in India. A total capacity of 2.5 gigawatts will be offered in this tender. This is the sixth such wind energy tender to be issued by SECI. A total capacity of 10 gigawatts has been offered by SECI through such tenders since February 2017, with 8 gigawatts already awarded.
All these tenders allow developers to choose the site for their projects across the country. These tenders use the federal incentive of exemption from inter-state transmission charges to offer developers the right to set up projects wherever they want.
All these tenders have a common clause wherein developers will sign power purchase agreements with SECI, representing minimal counter-party risk. Thus, the financial bids are expected to fall further and significantly.
Between early 2017 and June-end 2018, SECI has issued tenders worth 23 gigawatts of capacity wherein developers are free to choose the project sites.