SECI's 1.2GW solar tender oversubscribed

A new clause on a change of laws was added to the tender.

The Solar Energy Corporation of India’s (SECI) latest tender for 1.2GW of solar photovoltaic (PV) projects has been oversubscribed by 2.3GW, with the cumulative bids amounting to 3.5GW of capacity, according to a report by Mercom India.

The list of participants includes ReNew Power, Softbank, Avaada, O2 Power, Brookefield, Eden, Tata, Ayana, and IB Solar. ReNew Power and Softbank bid for 600 MWs each, whereas Avaada bid for 500 MW and the remaining six companies bid for 300 MW each, totaling 1.8 GW.

Projects will be installed on a build-own-operate (BOO) basis under the eighth tranche of the interstate transmission system (ISTS) programme.

Mercom India pointed out that a few days back, SECI amended the power purchase and sale agreement (PPA and PSA) for this 1,200MW solar tender, adding another point to the existing ‘change in law’ clause.

The clause states that in case of a change in the law on account of anti-dumping duty or safeguard duty or customs duty on solar photovoltaic (PV) modules, the solar power developer will be entitled to either an increase or decrease in the tariff.

Mercom India said this increase or decrease in tariff will be for an amount equivalent to ₹0.05 (~$0.00070)/kWh for every increase or decrease of ₹100,000 (~$1,402) of impact on the cost of solar PV modules.