SECI Cancels 1,000 MW FDRE Tender to Supply Excess Renewable
ECONOMY & POLICY

SECI Cancels 1,000 MW FDRE Tender to Supply Excess Renewable

The Solar Energy Corporation of India (SECI) has cancelled a 1,000 MW Firm and Dispatchable Renewable Energy (FDRE) tender that was issued to supply excess renewable energy to the Ministry of Power (MoP). The tender had been published on 26 December 2025 and was withdrawn about six months later, prompting questions from developers and policymakers about the future use of curtailed generation. The move affects proposals intended to channel surplus output from existing installations without adding fresh capacity.

The FDRE tranche was designed to maximise utilisation of energy that would otherwise remain curtailed and to establish a benchmark price for excess generation from round the clock projects that are often oversized to ensure delivery. The initiative aimed to enhance daytime grid availability, support Renewable Purchase Obligations and improve system flexibility, and developers were expected to bid strategically across portfolios to manage risk and reward. Industry observers noted that the tender structure had been seen as a potential reference for future commercial arrangements.

Under the tender rules, projects with an Inter-State Transmission System (ISTS)-connected Energy Storage System (ESS) were eligible to participate and were required to ensure a minimum daily supply of one point five megawatt-hour (MWh) per megawatt (MW) during solar hours. Any shortfall exceeding 25 per cent of the stipulated requirement would attract penalties at one point five times the Power Purchase Agreement (PPA) tariff, and SECI restricted participation to projects with existing signed PPAs so that excess supply would not interfere with contracted obligations. The tender included a 12-year PPA on offer from SECI for successful bidders.

The cancellation has been linked to a wider set of government actions that have seen renewable project approvals scaled back by more than 11.5 GW and to a possible lack of demand from distribution companies, although official clarification has not been issued. Market participants have said that further detail on the rationale and any replacement mechanism will be important to restore confidence and to understand implications for curtailment management and ancillary market development. SECI and the MoP are expected to provide more information in due course.

The Solar Energy Corporation of India (SECI) has cancelled a 1,000 MW Firm and Dispatchable Renewable Energy (FDRE) tender that was issued to supply excess renewable energy to the Ministry of Power (MoP). The tender had been published on 26 December 2025 and was withdrawn about six months later, prompting questions from developers and policymakers about the future use of curtailed generation. The move affects proposals intended to channel surplus output from existing installations without adding fresh capacity. The FDRE tranche was designed to maximise utilisation of energy that would otherwise remain curtailed and to establish a benchmark price for excess generation from round the clock projects that are often oversized to ensure delivery. The initiative aimed to enhance daytime grid availability, support Renewable Purchase Obligations and improve system flexibility, and developers were expected to bid strategically across portfolios to manage risk and reward. Industry observers noted that the tender structure had been seen as a potential reference for future commercial arrangements. Under the tender rules, projects with an Inter-State Transmission System (ISTS)-connected Energy Storage System (ESS) were eligible to participate and were required to ensure a minimum daily supply of one point five megawatt-hour (MWh) per megawatt (MW) during solar hours. Any shortfall exceeding 25 per cent of the stipulated requirement would attract penalties at one point five times the Power Purchase Agreement (PPA) tariff, and SECI restricted participation to projects with existing signed PPAs so that excess supply would not interfere with contracted obligations. The tender included a 12-year PPA on offer from SECI for successful bidders. The cancellation has been linked to a wider set of government actions that have seen renewable project approvals scaled back by more than 11.5 GW and to a possible lack of demand from distribution companies, although official clarification has not been issued. Market participants have said that further detail on the rationale and any replacement mechanism will be important to restore confidence and to understand implications for curtailment management and ancillary market development. SECI and the MoP are expected to provide more information in due course.

Related Stories

Gold Stories

Next Story
Infrastructure Urban

NABARD, NaBFID Partner to Fund Rural Infrastructure

The National Bank for Agriculture and Rural Development (NABARD) and the National Bank for Financing Infrastructure and Development (NaBFID) have signed a Memorandum of Understanding (MoU) to collaborate on financing infrastructure projects with significant rural impact.The partnership combines NABARD’s expertise in rural and agricultural infrastructure with NaBFID’s specialised infrastructure financing capabilities. It will focus on joint financing, knowledge sharing and developing financing solutions to improve access to long-term, competitively priced capital for rural infrastructure an..

Next Story
Infrastructure Energy

Advait Energy Wins Rs 1.34 Billion MPPTCL Order

Advait Energy Transitions (AETL) has secured a Rs 1.34 billion turnkey contract from Madhya Pradesh Power Transmission Co. Ltd. (MPPTCL) for the design, manufacturing and supply of Emergency Restoration Systems (ERS) for 400kV, 220kV and 132kV EHV transmission lines.The order, received against Tender No. TR-23/2025 on August 25, 2026, will be executed over 18 months. The contract value, inclusive of taxes, covers the complete ERS along with the required accessories.Emergency Restoration Systems are used to restore transmission infrastructure following disruptions, helping maintain continuity a..

Next Story
Real Estate

Gradiant expands Coimbatore engineering centre

Gradiant has expanded its Global Engineering Center (GEC) in Coimbatore, more than doubling its engineering workforce from approximately 100 to over 200 professionals as it strengthens its global project execution capabilities.The expanded centre will bring together multidisciplinary expertise across process engineering, detailed design and project engineering, enabling the India team to take on greater responsibility for the engineering and design of Gradiant’s international projects.According to Govind Alagappan, COO, Gradiant, Coimbatore’s engineering talent and industrial heritage make..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement