SECI FDRE tender reveals a tariff of Rs 4.98 per unit

12 Aug 2024

The outcome of the Solar Energy Corporation of India’s (SECI) renewable energy tender for the supply of solar power created a stir in the solar market last week when the tariff rate was fixed at Rs 4.98–4.99 per unit for a capacity of 630 megawatts (MW).

The power generated under this project is to be supplied by BSES Rajdhani Power and BSES Yamuna Power (625 MW) and Gift City in Gandhinagar (5 MW).

This power was given to Vena Energy, Hero Future Energies, Hexa Climate, JSW Energy, and Serentica Renewables. JSW Energy got 230 MW of power at the rate of Rs 4.98 per unit, while the remaining four companies got 100 MW each.

What makes it unique?

According to Sehul Bhatt, research director, Crisil Market Intelligence & Analytics, the discovered tariff rate of Rs 4.98 per unit under SECI's FDRE tranche IV is the lowest for such SECI projects.

However, the prices of SECI-linked projects were not comparable with the prices of other FDRE projects allotted by SJVN, NHPC, and NTPC, whose rates were Rs 4.38 per unit, Rs 4.55 per unit, and Rs 4.69 per unit, respectively.

"This is due to the fact that these tenders focus on guaranteeing the availability of peak power for four hours, whereas SECl projects prioritise demand fulfilment ratios (DFR) of 80 to 90 percent per month," he stated.

He stated that the tariff rates in the second allocation of FDRE Tranche IV SECI have been reduced by Rs 0.60 per unit to Rs 4.98 per unit from Rs 5.60 per unit, owing to a reduction in DFR to 80 percent, as compared to the 90 percent recorded in the initial allocation of 1,500 MW Tranche II.