SECI Cancels Nearly 1 GW Tender Capacity

• India's Solar Energy Corporation of India (SECI) has canceled 950 MW of solar power capacity it tendered in 2016
• This includes 500 MW open category and 100 MW domestic content capacity of the  Kadapa Solar Park Tranche-IV, 100 MW of Kadapa Solar Park Tranche-V and 200 MW of Pavagada Solar Park Tranche-VI
• Some of these tenders carried provisions for battery storage energy systems, but with battery storage still being a 'rather expensive' technology coupled with a steep decline in solar tariffs forced SECI to take a relook
• SECI plans to re-tender this capacity in the future

India's Solar Energy Corporation of India (SECI) has canceled solar tenders with a cumulative capacity of 950 MW. This capacity includes 500 MW in the open category and 150 MW domestic content category of Kadapa Solar Park Tranche-IV, 100 MW of open category of Kadapa Solar Park Tranche-V, and 200 MW of solar of Pavagada Solar Park Tranche-VI, according to Mercom Capital Group.

Projects under Kadapa Solar Park Tranche-V and Pavagada Solar Park Tranche-VI also included battery energy storage systems of 5 MW/2.5 MWh (see Solar & Storage Tender For Andhra Pradesh).

Falling solar tariffs are being touted as the reason behind SECI cancelling this capacity. Business daily The Economic Times quoted SECI Managing Director Ashwini Kumar as saying, "The lowest solar tariff has fallen to Rs 2.44 per kWh (at an auction in May at the Bhadla Solar Park in Rajasthan). Even with VGF, a project that includes storage can never hope to match it. Everybody in the industry is disappointed as it was the first time we were trying this." 

ACME Solar had won 200 MW in the Bhadla Solar Park Phase III tender of 500 MW for a tariff of 2.44 INR ($0.037) (see ACME Wins 200 MW At 2.44 INR Record).

As per Mercom, SECI is in negotiation with states on tariffs and plans to re-tender the capacity in the future.