Solar Energy Corporation of India Limited (SECI) has issued a new Request for Selection (RfS) to develop Inter-State Transmission System (ISTS)-connected renewable energy projects under a scheme called SECI-CfD-I.

The initiative focuses on ensuring a reliable power supply during peak demand hours by using a Contract for Difference (CfD) mechanism.

Project Specifications and Supply Requirements

The total targeted supply under this tender is 1,500 MWh, which is planned as 500 MW capacity for 3 hours daily. Under this model, developers will set up projects on a Build-Own-Operate (BOO) basis.

SECI will act as the central agency to manage the CfD pool and handle financial settlements. The selected developers will sign agreements for a period of 12 years and will supply electricity through the Indian Power Exchanges (Power exchange platform) during non-solar hours, mainly in the evening.

The required supply is 3,000 kWh per MW of contracted capacity each day during peak hours, typically between 6:00 PM and midnight.

Financial Structure and Risk Management

To reduce risks related to price fluctuations in the power market, a stabilization fund of USD 8.17 million has been created. This fund will cover the difference between the Market Clearing Price (MCP) and a fixed Strike Price agreed under the CfD mechanism.

This structure aims to provide revenue certainty to developers while maintaining market-based pricing. The tender includes several financial requirements for bidders.

The RfS document fee is set at USD 537.50 plus GST and is non-refundable. A bid processing fee of USD 215 per MW must also be paid, with a maximum cap of USD 21,500 plus GST. Bidders need to submit an Earnest Money Deposit (EMD), which varies depending on the technology used.

For solar PV projects, the EMD is USD 10,400 per MW, while for wind and other renewable sources, it is USD 14,700 per MW. For energy storage systems, the EMD is USD 2,580 per MWh.

Performance Guarantees and Project Guidelines

Developers who are awarded projects must also provide a Performance Bank Guarantee (PBG) within 20 days of receiving the Letter of Award. The PBG is set at USD 26,015 per MW for solar, USD 36,765 per MW for wind and other renewable energy sources, and USD 6,450 per MWh for storage components.

The guidelines allow flexibility in project development. Projects can be set up anywhere in India based on the developer's choice. Each bidder, including its related entities, can bid for a minimum of 50 MW and a maximum of 125 MW.

The scheme is technology-neutral, meaning developers can use any renewable energy source, and they are encouraged to include energy storage systems to meet the peak supply requirements. Additionally, developers are allowed to procure up to 25% of their annual energy from green markets or through bilateral agreements.

Bidding Timeline and Process

The bidding process follows a defined schedule.  A pre-bid meeting will be conducted as per the details on the ISN-ETS portal. The bid submission deadline is May 26, 2026.

This tender represents an important step toward improving grid stability in India. By combining renewable energy with storage and market-based mechanisms, SECI aims to ensure a steady and reliable power supply during high-demand evening hours.

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