SECI extends deadline for 3,000 MW solar tender

The Solar Energy Corporation of India (SECI) has extended the deadline for receiving bids for the government’s manufacturing-linked solar scheme to May 14. This is the third time the SECI has extended the date – original deadline was March 18, 2019. The scheme seeks to set up 3 gigawatt (GW) of solar plants against 1.5 GW of manufacturing units.

This is the second phase of the tender launched in January 2019, after the government’s maiden call for a similar contract had to be cancelled due to tepid industry response. SECI’s initial invitation for a 10 GW of manufacturing-linked solar tender had received quotes for only 2 GW capacity put forward by Azure Power. The scheme had failed to attract developers even after the SECI had sweetened the terms for bidders multiple times.

The development comes with the slowing pace of adding renewable generation capacities. In FY19, as much as 8.6 GW of renewable capacity were added, down from 11.8 GW commissioned in FY18. As much as 41 GW of renewable energy projects have been tendered in the first three quarters of FY19, while nearly 17 GW of tenders have been cancelled at the same time, mostly due to muted response from project developers.

At the end of Q3FY19, nearly 18 GW of solar projects were under various stages of development. The country plans to have 175 GW of installed renewable power capacity by FY22.

The target, however, now seems achievable as 45 GW of hydro power plants would now be counted as renewable energy after a recent Cabinet decision.