SECI may reduce solar tender size over high tariff concerns

13 Jan 2021 CW Staff

The Solar Energy Corporation of India (SECI) is likely to reduce the size of its latest solar tender and change location specifications, as per sources. The size is being reduced from 2,500 MW to 1,800 MW.

Earlier, the projects were to be executed at the solar park in Koppal district of Karnataka. Three other spots have now been identified by SECI in the same state where the projects, once auctioned, can be built.

The Ministry of New and Renewable Energy conducts solar and wind auctions through SECI, the nodal agency. There have been fears of high costs for setting up projects in Koppal, pushing up the tariff – to be discovered through the auction – so high that the power may not be bought by the discoms.

As per renewable energy consultancy firm Bridge to India, the 2,500 MW tender was issued in April 2020, but SECI extended the deadline for submission of bids six times.

As per sources, SECI is to bear the cost of land required, but it still deems that the discovered tariff from the reverse auction might be so high that developers might face procurement issues.

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