SECI has finally received a solid response for its auction for its manufacturing-linked solar energy projects tender.
The Solar Energy Corporation of India (SECI), after multiple and arduous extensions, has finally received a solid response for its auction for the infamous manufacturing-linked solar energy projects tender.
The request for selection for which SECI recently held auctions was seeking solar power developers for setting up of 7 GW ISTS-Connected solar PV power plants linked with setting up of 2 GW (per annum) solar manufacturing plant.
However, the size of the tender wasn’t always at 7 GW. In June 2019, SECI had revamped and reissued the manufacturing linked solar tender which it had initially floated in January 2019 with a quoted capacity of 5 GW in solar projects. This was bumped up to 6 GW in subsequent amendments. And in October, the nodal agency decided on increasing the capacity of projects to be awarded under the tender from 6 GW to 7 GW.
With that change, the new tender is seeking developers for setting up of 7 GW of ISTS-connected solar PV projects linked with 2 GW (annual) of solar manufacturing component. The amendments also included a bump up for the ceiling tariff that will be payable to the project developers to Rs 2.93/kWh from Rs 2.75/ kWh.
And now, according to industry sources, the auction has yielded bids worth 10 GW of solar energy projects. Adani Green Energy has submitted a bid for 5 GW of solar projects, including 1 GW manufacturing facilities, followed by Azure and Navyug which submitted bids for 2.5 GW each, including 500 MW manufacturing plants each, the source added. The tariff-based reverse auction will be conducted by SECI later this week, after which the final capacities will be allocated to the bidders.
After the successful auction, an investment of around Rs 6,000 crore is expected for setting up 1GW of solar manufacturing facilities, which would generate permanent direct employment of up to 10,000 people.
At present, India imports 95 percent of its solar module requirement from China, leading to a forex outflow of around USD 10 billion per year. The tender aims to provide a boost for local manufacturing, resulting in large scale development of industries and employment in India.