Three Bidders For SECI’s Manufacturing Linked Tender

Several extensions and modifications later, the Solar Energy Corporation of India (SECI) can finally heave a sigh of relief for its mega manufacturing linked solar project tender. It has now received offers for 8 GW of solar PV project capacity linked with 2 GW of manufacturing capacity from three bidders.

Mercom India Research reports the bids have come from:

• Adani Green Energy for 4 GW projects with 1 GW manufacturing capacity,
• Azure Power and
• Navyug Green Energy have each bid for 2 GW of project capacity and 500 MW of manufacturing capacity.

This way 7 GW of project capacity tendered has been oversubscribed by 1 GW.

SECI had originally issued a manufacturing linked tender in May 2018 for 5 GW production capacity with 10 GW project capacity and a maximum tariff payable at INR 2.93 per kWh for 25 years. In January 2019, the government rejected the sole bid it received from Azure Power finding it unreasonable as per local media reports and said it will re-issue the tender (see India To Re-Issue 5 GW Manufacturing Linked Tender).

In June 2019, SECI launched a fresh interstate transmission system (ISTS) connected solar power project development tender linked with 2 GW annual manufacturing capacity capping bids at INR 2.75 per kWh, which Mercom said back then was a revamped version of its January 2019 tender (see 6 GW ISTS PV Tender With 2 GW Manufacturing).

A Press Trust of India (PTI) report points out that India suffers a forex outflow of around $10 billion annually as it is dependent on Chinese solar modules for 95% of its requirement.

Recently, the Indian Renewable Energy Development Agency Limited (IREDA) has proposed to provide term loan assistance under this manufacturing linked tender of SECI stating in a letter that it would be happy to examine any such proposal from a qualified bidder.

India has an official target to achieve 175 GW of renewable energy capacity by 2022, including 100 GW solar, which the government says it is confident of overachieving with 200 GW to be installed cumulatively by 2022. Indian Prime Minister Narendra Modi announced at the 2019 Paris Climate Action Summit that his country would be increasing overall renewable energy capacity to 450 GW by 2030.   

However, event the 2022 target seems a long way to go. End of July 2019, the cumulative grid-interactive solar PV capacity of India was over 30 GW out of 81.3 GW of total renewable energy capacity (see 30 GW: India Installed PV Capacity Till July 2019).