SECI awards 1,500 MW FDRE tender at Rs 5.99-6/kWh
Solar Energy Corporation of India (SECI) has awarded its 1,500 MW Firm and Dispatchable Renewable Energy (FDRE) tender to three developers at tariffs of Rs 5.99/kWh to Rs 6/kWh, marking a further decline in the cost of procuring firm renewable power. The tender was issued in June and has been awarded within two months.
Waaree Energies’ subsidiary Waaree Forever Energies Pvt. Ltd. emerged as the lowest bidder, securing 700 MW at Rs 5.99/kWh. NTPC Renewables secured 500 MW at Rs 6/kWh, while Acme Solar Holdings secured 750 MW at the same tariff.
The awarded capacities total 1,950 MW, although the tender is described as a 1,500 MW FDRE procurement. The tender documents also provide for an assured Peak Supply requirement, with subsequent revisions to the contracted capacity.
Tariff decline
The latest tariff is significantly below the Rs 8.5/kWh level at which bidding for this FDRE procurement initially started. FDRE tariffs have also declined from Rs 6.74/kWh to Rs 6.27/kWh over the past two years, with the latest bidding bringing the peak power tariff down to Rs 6/kWh.
The previous SECI FDRE tender was awarded at Rs 6.28/kWh-Rs 6.27/kWh. Serentica Renewables and ACME Solar each secured 600 MW at Rs 6.28/kWh, while AMPIN Energy Transition won 199 MW at the same tariff. Adyant Emnersol Private Limited, a subsidiary of Datta Infra, secured 100 MW at Rs 6.27/kWh.
The decline in tariffs reflects improving battery energy storage system (BESS) economics, greater technical capability in integrating solar, wind and storage assets, and competition among developers. The long-term power purchase agreements (PPAs) offered under these tenders also provide revenue certainty, which can support financing for projects.
Tender scope
SECI’s tender requires the selected developers to provide an assured Peak Supply of 6,000 MWh, equivalent to 1,500 MW for four hours, from an Inter-State Transmission System (ISTS)-connected renewable energy project in India.
The procurement was initially structured as an FDRE project with an assured Peak Supply of 6,000 MWh (1,500 MW x 4 hours). SECI subsequently revised the Build-Own-Operate (BOO) project capacity to 4,800 MWh (1,200 MW x 4 hours) under Tariff-based Competitive Bidding (SECI-FDRE-IX).
Fourteen other companies also participated in the tender but were not among the winning bidders. They were JGRJ Seven Renewable Pvt. Ltd., SAEL Industries, EMIF II Holdings V II Cooperatief W.A., AVAADA BESS Pvt. Ltd., Rama Reflection India Pvt. Ltd., MB Power (Madhya Pradesh) Ltd., Engie Energy India Ltd., ReNew Solar Power Pvt. Ltd., Purvah Green Power Pvt. Ltd., ABC Solar (India) Pvt. Ltd., Resolven One Energy Pvt. Ltd., Juniper Green Energy Ltd., NLC India Renewables Ltd. and Apraava Energy Pvt. Ltd.
The latest FDRE-IX results point to renewable energy paired with storage becoming a more established procurement model rather than remaining a niche approach. The movement in tariffs will remain an important measure of the sector’s commercial maturity, particularly as developers balance lower tariffs with the need to maintain reliable supply and viable project returns.
The featured photograph is for representation only.
