SECI’s 9.29 GW Of Renewable Projects Still Await Buyers

SECI

The growth in tendering for utility-scale projects marks the progress within the renewable energy sector. Recent data shared by the Solar Energy Corporation of India (SECI) indicated a list of renewable projects that are yet to see buyers. As per the prescribed practice, the renewable project developers who win tenders through SECI tie up with the discoms who buy their power at bulk from the generation centers.

However, the list comprising projects of several leading project developers shows the lesser interest of power discoms to procure power from some of these projects. Several of these projects range from Inter-State Transmission System (ISTS) solar projects, FDRE projects and even some energy storage projects. SECI often acts as a nodal agency in facilitating in the setting up of these projects.

A number of these solar projects had a quoted tariff ranging from Rs 2.42 per unit to Rs 2.6 per unit. This is against several other benefits like waiver of Basic Customs Duty (BCD) impact on the raw materials, lower ISTS charges among others

SECI has found 33 such projects with a cumulative capacity of 9,296 MW that remained unsold till the present. This is, despite the projects being awarded to the bidders.

Wide range of green projects 

Some of the key projects are 2.766 GW under the manufacturing-linked solar power scheme, 600 MW under the Solar Tranche XI scheme, 800 MW under the Solar Tranche XIII scheme, 1.5 GW project under the Solar Tranche XIV scheme, and 450 MW Solar project under the tranche XVI scheme.

Whereas, one energy storage project of 700 MW and two hybrid projects of 600MW and 1.2 GW are stuck in the pipeline. This list also included a firm and dispatchable renewable energy project of 680 MW.

Delays and aftermath 

Delays in project commissioning not only impact the trading margin of unsold projects but also complicate the process of setting tariff rates. This challenge arises because tariffs for new projects continue to decrease over time. Thus creating financial strain on the companies.

Major solar developers such as Azure Power India, Adani Green, ReNew Solar Power, Avaada Energy, ACME Solar Holding, SW Neo Energy, Hero Solar Energy, Juniper Green, and Serentica Renewables among others big players suffer from this delay. Thus, taking a toll on the company’s finances. Many of these firms are not unable to get buyers.