SECI raises tariff cap for 500 mw solar tender to 2.93/kWh

The Solar Energy Corporation of India (SECI) has increased the tariff ceiling for its 500 MW (phase 1) solar tender that it had floated earlier this year by 0.08 (~$0.001)/ kWh.

The amended tariff cap is 2.93 (~$0.04)/kWh against the previous tariff of 2.85 (~$0.041)/ kWh for 25 years.

In April 2019, SECI had issued an RfS for 500 MW of grid-connected solar PV projects in Tamil Nadu on Build Own Operate (B-O-O) basis. Later, it had extended the bid submission date from May 27, 2019, to June 27, 2019. The extension was announced due to a tepid response from the developers.

(TANGEDCO) will be the power procurer for these grid-connected solar projects.

Adding to the clause of connecting the commissioned projects to the grid, it is clarified that since the projects are to be located within Tamil Nadu, the state government will provide the necessary support to facilitate the connectivity of the project to the substation.

The latest amendment states that the successful bidders will have to pay 100,000 (~$1,416)/ MW/project along with 18 percent GST towards administrative overheads to SECI. It also mentions that the selected developers will have to furnish a payment security deposit of 500,000 ($7,080)/MW/projects. This fund will be a part of the Payment Security Fund maintained by SECI for the projects.

In May 2019, TANGEDCO, the state DISCOM, handed over the responsibility of managing solar and wind tenders to SECI.