SECI Launches Solar Tender Under ISTS Tranche XIII

• SECI has launched a tender for 1.5 GW ISTS-connected solar PV capacity under tranche XIII 
• It can be built anywhere in India on BOO basis with SECI as the offtaker for 25 years  
• The agency is also seeking term loan of INR 10 billion for a 300 MW solar power plant in Andhra Pradesh  

The Solar Energy Corporation of India (SECI) has launched the request for selection (RFS) round for tranche XIII of the interstate transmission system (ISTS)-connected solar power projects in India. Additionally, it has invited proposals for the sanction of term loan for a solar power plant.  

ISTS tranche XIII 

Through the latest call, SECI seeks to establish 1.5 GW PV capacity. Interested developers will be required to set up projects on a build-own-operate (BOO) basis, including building the transmission network up to the interconnection/delivery point.   

Bids can be submitted for a minimum 50 MW and a maximum 750 MW capacity by a single bidder, in the multiples of 10 MW. Bidders are free to choose the ISTS substations for interconnection of the project to the grid on a pan-India basis.  

SECI will be the offtaker for the power produced for a 25-year period, which it will sell to different buying entities.    

Launched on December 29, 2023, the last date to submit bids for the RFS round is January 31, 2024 for online and February 2, 2024 for offline submissions. Bids will be opened on February 5, 2024. Details are available on SECI's website.    

It was seeking 1 GW solar PV capacity under ISTS tranche XII in a tender launched in October 2023 (see SECI's ISTS Tranche XII Solar Power Project Tender).  

Term loan  

On December 29, 2023, SECI invited a request for proposal (RFP) seeking a term loan of INR 10 billion ($120 million) for a 300 MW solar power plant in Andhra Pradesh. Proposals are sought from scheduled commercial banks/financial institutions on a single/multiple bank lending basis at a competitive rate of interest for 20 years.  

Part of the 1.2 GW capacity awarded by the Indian Renewable Energy Development Energy Limited (IREDA) to SECI, the 300 MW PV capacity is proposed to be developed in Ramagiri and Muthuvakuntla villages of Sri Sathyasai district. It has secured in-principle approval from the SECI board and approval from the Government of India.  

Power generated from the facility is contracted to be sold to Madhya Pradesh Power Management Company Limited (MPPMCL) for INR 2.57/kWh. It is expected to enter commercial operations by June 30, 2025.  

SECI estimates the total project cost as INR 14.2 billion ($170 million) and plans to fund it with a 70:30 debt-equity ratio, which may go up to 75:25. Equity will be met by internal accruals and Viability Gap Funding (VGF) to be received from IREDA, while debt will be arranged by way of a rupee term loan from banks/financial institutions. 

Willing lenders can submit their RFPs by January 21, 2024, according to the RFP call.     

At the end of November 2023, SECI had successfully awarded more than 61.27 GW of renewable energy projects in India, including 37.68 GW of solar power capacity.