Amid Adani Row, SECI Clarifies Its Stand On Its Role In RE Projects

Amid Adani Controversy, SECI Clarifies Its Stand On Its Role

Amid ongoing controversy surrounding the renewable energy division of the Adani Group, the Solar Energy Corporation of India (SECI) has issued a statement. While not directly addressing the controversy, SECI highlighted its critical role in India’s renewable energy sector. To date, SECI has awarded approximately 70 GW of renewable energy tenders.

The Renewable Energy Implementing Agency (REIA) emphasized that SECI’s involvement lends credibility to the projects. Furthermore, it aids in identifying the lowest tariffs for green energy projects, ensuring that the benefits of these tenders reach end consumers.

In its statement, SECI sought to alleviate concerns regarding the renewable energy tendering process. The agency explained its operations and the benefits associated with its model. As a recognized REIA of the Indian government, SECI is responsible for issuing renewable energy tenders.

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Lowest tariffs 

“After the e-bidding and e-Reverse Auction process, the lowest tariffs are discovered and capacity is offered to DISCOMs across India for procurement of power. The same is also put up on SECI’s official website to enable various DISCOMs to avail the capacity at the discovered tariff. The DISCOMs, then approach SECI with their requirement of RE power. One bid normally consists of multiple developers and buyers. In some cases, bidders also suo-moto reduce the discovered tariff if subsequent to the bidding process, tariff have come down and no DISCOM is willing to buy at discovered tariff,” the SECI.

The subsidiary of the Ministry of New and Renewable Energy (MNRE) further clarified that these DISCOMs, after internal approval processes, provide consent for the offtake of power to SECI. The organization then enters into a Power Sale Agreement (PSA) with the respective DISCOM. Following the PSA, SECI signs a Power Purchase Agreement (PPA) with the selected bidders.

Benefits with SECI Involvement 

SECI stated that it monitors the progress of projects during their implementation and assists in resolving any issues that arise. “Post-project commissioning, SECI, as an intermediary power trader, procures the electricity generated by the projects and in turn sells it to the DISCOMs as per terms of the PPA/PSA respectively,” SECI explained.

The agency highlighted three key benefits of its role as a power procurement intermediary. These include improved financing options for developers, thanks to SECI’s higher credit ratings. SECI’s involvement also leads to lower renewable energy tariffs. Furthermore, SECI assured that it has never defaulted on payments to project developers, even when there were delays from the DISCOMs.