IREDA & SECI Launch Tenders For Over 6 GW Solar

• IREDA has issued RFS round to seek interested bidders for 5 GW of solar PV capacity to be set up anywhere in India
• This grid connected capacity to be auctioned is part of CPSU Phase-II, Tranche-III
• Projects need to be set up on BOO basis for power to be used for self-use or for use by government entities
• SECI has also issued an NIT to procure power from 1,785 MW solar PV capacity for Rajasthan discoms

The Indian Renewable Energy Development Agency Limited (IREDA) has launched a new tender soliciting bids from solar power developers to set up 5 GW of grid connected solar PV projects in India. This tender forms Tranche-III under Central Public Sector Undertaking (CPSU) Scheme Phase II.

Projects need to be built on a build-own-operate (BOO) basis with power generated to be used solely for self-use or use by government or government entities, either directly or through electricity distribution companies on payment of mutually agreed usage charges of not more than INR 2.20 ($0.030) per kWh.

Bidders will be selected on the basis of viability gap funding (VGF) sought. VGF is a financial mechanism for competitively awarded solar power projects in India under which government offers financial support to the winners. For this tender, interested bidders can choose to not quote any VGF as well.

Bids can be submitted latest till March 4, 2021. IREDA will conduct e-reverse auction on March 24, 2021 and announce the list of successful bidders on March 26, 2021. Detailed request for selection (RFS) documents can be viewed on IREDA's website.

Under the CPSU Phase-II scheme, the Government of India aims to build 12 GW of solar power capacity over 4-year period, namely 2019-20 to 2022-23. In April 2020, the Ministry of New and Renewable Energy (MNRE) handed over the responsibility of CPSU Phase-II to IREDA, taking it from the Solar Energy Corporation of India (SECI) (see IREDA Replaces SECI For CPSU Phase-II Solar Scheme).

Previously, SECI awarded 922.4 MW capacity under CPSU Phase-II Tranche-I to 6 government entities, followed by 3 public sector companies claiming 1.1 GW under Tranche-II, also awarded by SECI (see SECI Launches 1.2 G ISTS-VIII Tender).

SECI tender for 1,785 MW solar

In a related news, SECI has issued a notice inviting tender (NIT) to procure 1,785 MW grid connected solar power on behalf of Rajasthan state discoms. Projects will be set up in the state on BOO basis with winners entering a 25-year power purchase agreement (PPA) with SECI. The agency will be issuing RFS documents for this capacity under Tranche-IV shortly, it stated on its website.

Under Tranche-III, SECI had sought bids for 1.07 GW for the state of Rajasthan attracting INR 2.00 per kWh as the lowest bid, offered by Aljomaih Energy & Water and Green Infra Wind Energy in November 2020 (see New Record Low Solar Tariff In India @ INR 2.00/kWh).