SECI may reduce solar tender size due to high tariff concerns

The size is being brought down from 2,500MW to 1,800MW. While earlier the projects were to be located at the solar park in Koppal district of Karnataka, SECI has now identified three other spots in the same state where the projects, once they are auctioned, can be built.

The Solar Energy Corporation of India is likely to reduce the size of its latest solar tender as well as change location specifications, sources said.

SECI is the nodal agency through which the renewable energy ministry conducts wind and solar auctions. It has had second thoughts about Koppal fearing the cost of setting up projects there would be high, pushing up the tariff – to be discovered through the auction – so high that discoms might not buy the power.

The 2,500MW tender was issued on April 10, 2020, but SECI has extended the deadline for bid submission six times, according to renewable energy consultancy firm Bridge to India.

"SECI will bear the initial cost of the land required, but it still felt that the discovered tariff from the reverse auction may be too high and developers might face procurement issues,” a source said, requesting anonymity.

"A note has been sent to the chief minister of Karnataka with the changed conditions. Once his approval is obtained, SECI will go ahead," said the source quoted above.

Source:- The Economic Times

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