SECI Lowers Manufacturing Share In 5 GW Tender

Solar Energy Corporation Of India Introduces Several Amendments To Original 5 GW Manufacturing Capacity Tender Linked With 10 GW Solar Power Project Capacity
10:39 PM (Beijing Time) - 04. September 2018
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Key Takeaways

  • SECI has reduced the manufacturing capacity of the 5 GW tender it issued in May 2018 to 3 GW
  • Minimum 2 GW of assured PPAs are now being offered for setting up 600 MW of new manufacturing capacity under the tender
  • Commissioning schedules have been revised, and the developer will have to bear ISTS related charges for any commissioning beyond March 31, 2022
  • Maximum tariff for solar power projects of the tender is now fixed at INR 2.75 ($0.039) per kWh as against previous INR 2.93 ($0.041) per kWh sans safeguard duty

The Solar Energy Corporation of India (SECI) has brought down manufacturing capacity for one of its tenders issued in May 2018 from 5 GW to 3 GW. It will continue to offer 10 GW solar project capacity linked with interstate transmission system (ISTS) on build-own-operate basis.

The tender was launched in May 2018 and SECI will select winners who would have to set up the manufacturing facility in parallel with setting up ISTS connected solar PV power plants (see SECI Issues 5 GW PV Manufacturing Plant Tender).

SECI has now introduced some amendments to the original tender. These include:

  • Manufacturing plant capacity has been reduced from 5 GW per annum to 3 GW per annum.
  • Previously, 5 GW capacity was to be commissioned within 3 years’ time. Now, 3 GW capacity will need to be set up over 2 years.
  • Solar power developers (SPDs) will be provided assured PPAs for 2 GW for setting up 600 MW of solar manufacturing capacity. In the original tender, 1 GW manufacturing capacity was linked to 2 GW of assured off take of power.
  • Hence, minimum capacity to bid for solar power plants is 2 GW linked to 600 MW manufacturing capacity. In all, 5 projects of 2 GW solar power plant capacity can be bid for.
  • The earlier version of the tender allowed for staggered commissioning over a period of 4 years with minimum 25% cumulative allocated capacity commissioned annually. Now, minimum 40% of the cumulative allocated capacity will need to come online within 21 months from the date of PPAs. Balance capacity must come online within 36 months from the date of letter of award (LoA).

Any delay in commissioning beyond March 31, 2022 will have the developer bearing applicable ISTS charges levied or to be levied on the buying entity.

  • Maximum tariff for the tender has been brought down to INR 2.75 ($0.039) per kWh, from INR 2.93 ($0.041) per kWh. All of this excludes the safeguard duty.
  • In the original tender, SECI allowed to import polysilicon to be imported, while the rest of solar module products need to be produced locally. The revised tender now reads, “For silicon based facilities, the production facility of producing modules from Polysilicon need to be established anywhere in India and the functional raw material, that is Polysilicon, can be imported.” It further adds, “For non-silicon based technologies, the primary functional raw material can be imported. However, the subsequent manufacturing chain needs to be established anywhere in India. the other supplementary raw materials (apart from primary raw material) required for processing can be sourced from anywhere.”
  • SECI has also increased the minimum efficiency of cells produced onsite to 19%, from the earlier requirement of 17%. It further requires at least 30% of the installed capacity to produce cells of 20% efficiency or more. A minimum 18% module efficiency is a must for thin film module manufacturing facilities

Details about the amendments are available on the website of SECI.

In August 2018, SECI cancelled its 3 GW auction owing to higher tariffs, barring ACME Solar’s win for INR 2.44 ($0.035) per kWh (see SECI Cancels 3 GW Auction, Partially).

 

Anu Bhambhani

Anu Bhambhani is the Senior News Editor of TaiyangNews

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