In a remarkable advancement for India's renewable energy sector, the Solar Energy Corporation of India (SECI), a Central Public Sector Undertaking (CPSU) of the Government of India and a leader among Renewable Energy Implementing Agencies, has launched its largest Solar + Energy Storage System (ESS) (2 GW Solar and 1000 MW/4000 MWh ESS) tender to date. This groundbreaking tender, which follows SECI's first Solar ESS tender under the Build-Own-Operate (BOO) model, signals a new era for renewable energy in India.
SECI's initial Solar ESS tender, boasting a capacity of 1.2 GW/1.2 GWh, achieved a notable price discovery of INR 3.41/kWh. This set a new benchmark and demonstrated the potential for cost-effective renewable energy solutions. Building on this success, SECI has now launched an even more ambitious project, featuring a staggering 2 GW Solar capacity paired with a 1 GW/4 GWh ESS. This initiative not only represents a milestone for India but also positions itself as one of the largest Solar + ESS tenders globally.
The key attributes of SECI's tender are impressive. The project capacity is set at 2 GW Solar + 1 GW/4 GWh ESS, with a location spanning PAN India. The procurer has been identified, with specific details to be shared later by SECI. The project will operate under the BOO model for a tenure of 25 years. Each bid must include a minimum of 0.5 MW/2 MWh ESS for every 1 MW Solar, with bid quantities ranging from a minimum of 50 MW to a maximum of 1000 MW. The annual non-peak hour Capacity Utilization Factor (CUF) is targeted at 25-27%, with a minimum annual energy requirement not falling below 15% of the declared CUF.
Peak hours are defined as 4 hours (non-solar) with at least 1 continuous hour, informed by the procurer a day in advance. The minimum peak discharge is set at 2 MWh per 1 MW capacity, with mandatory peak offtake of 2 MWh per 1 MW daily by the procurer. If the procurer does not specify peak hours by 6 am, the Solar Power Developer (SPD) can supply peak power at their discretion. Additionally, SPDs are permitted to source 5% of their annual energy from the market to meet tender conditions.
The ESS can be used by the developer for other applications without needing a No Objection Certificate (NOC) during off-peak hours, although any breach in supply will incur a penalty of 1.5 times the Power Purchase Agreement (PPA) tariff. The commissioning timeline is set at 24 months, with a maximum allowable delay of 6 months, subject to Liquidated Damages (LD). Part commissioning is permitted, with the initial component requiring a minimum of 50 MW along with the proportionate ESS component. Early commissioning is also allowed, with power purchased by the procurer at the PPA tariff rate; if only the solar component is ready, the power can be purchased at 50% of the PPA tariff.
Penalties for CUF shortfalls include a monthly penalty of 1.5 times the PPA tariff for any shortfall exceeding a 15% buffer of the committed annual CUF during off-peak hours. For peak energy shortfalls, penalties will be levied at 1.5 times for not meeting 85% of peak energy (2 MWh per 1 MW) annually and 70% of peak energy monthly. The successful bidding range is within L1 + 2%, and financial closure is required 6 months prior to the Scheduled Commercial Operation Date (SCOD). Finally, the developer must share with SECI a tentative hourly generation profile for a representative date of each month.
This tender is a significant step forward in India's renewable energy journey, reflecting the growing momentum and variety of tenders being issued by various agencies, underscoring the country's commitment to expanding its renewable energy infrastructure.
In a recent study, it is highlighted that due to rapid electricity demand growth, India will likely experience significant evening power shortages by 2027 (20-40 GW), even if all the thermal and hydro capacity currently under construction comes online as planned. Therefore, large-scale solar + storage deployment is the main option left to avoid power shortages, as they can be deployed much faster than new thermal and hydro assets. By 2027, 100-120 GW of new solar, with 50-100 GW co-located with 16-30 GW x 4-6 hours of storage, can avoid shortages.
Recent gigawatt-scale solar + storage auction results, with a record low price of INR 3.4/kWh, show that such deployment will be highly economical. National dispatch in FY 2030 with 500 GW clean power will necessitate approximately 250-300 GWh of energy storage. Electric vehicles, green hydrogen, industrial electrification, and AI-driven data centers imply a five-fold increase in electricity demand by 2050.
SECI's latest tender is a testament to India's growing commitment to renewable energy and its determination to overcome future power shortages through innovative and large-scale solutions.
The tender is available at :
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