SECI’s 630 MW FDRE Project Moves Ahead With Adoption of Tariff

A journey that started in September 2023 through the issue of a tender for Renewable energy with energy storage for 1260 MW of Firm and Dispatchable Power (FDRE) has moved a step closer to fruition with the adoption of Tariffs by the CERC. The five winning firms in the tender had finally been awarded capacities in a reduced tender of 630 MW at a rate of between Rs 4.98 and Rs 4.99 per kWh. The projects are to be run on a build own and operate (BOO) system for 25 years. The generator must supply firm and dispatchable renewable energy power, with peak hours declared by the DISCOM as specified in the RfS. The generator must offer 100% renewable energy but can source up to 5% from green market sources/bilateral agreements.

From the RFS on September 15, to the actual final date for bid submissions on July 3, 2024, the tender saw 22 corrigendums or amendments, before finally reaching its conclusion with the issuance of letter of awards to the firms on August 7, 2024. Moving it further ahead to this stage was the acceptance for offtake of 625 MW by BRPL, BYPL (Delhi Discoms) and GIFT PCL in Gujarat (5 MW) that enabled SECI to move ahead and issue the letters. It has to formally sign the Power Sales Agreements as well with these entities however.

For the firms involved, especially JSW New Energy, which has the highest share of 230 MW, or even Hexa Climate Solutions promoted by former Amplus founder Sanjeev Aggarwal, the go ahead to move ahead is critical as these seek to build on the new opportunities in storage linked tenders. In most cases, share of wind energy is higher than solar it seems, although that might yet change if they see fir, considering the changed circumstances since prices were first bid for .

Finally, if the If the distribution licensee or Intermediary Procurer does not decide on the adoption of tariffs within 60 days of submission or 120 days from the date of Power Sale Agreement (PSA), the procurer(s) may grant appropriate extension of time in SCSD (Supply Cycle Support System)  to the generators.