Manufacturing-linked solar tender scaled up to 7 GW

Solar generation capacity aggregating to 7 GW—as against 6 GW earlier—will now be awarded against setting up of 2 GW of annual manufacturing capacity. Tariff ceiling has also been increased to Rs2.93/kWh, from Rs2.75, for a period of 25 years. Bids can be submitted till October 31.

October 14, 2019 Uma Gupta

India currently has 3 GW of annual solar cell manufacturing capacity and 11 GW of module production lines.

Image: Orb Energy

India’s Solar Energy Corporation of India has made a host of amendments to the tender for 2 GW of annual solar manufacturing capacity linked to 6 GW of inter-state (ISTS) connected solar projects.

As per the RfS published in June, the manufacturing capacity is tendered as four projects—one each for cells, modules, wafers and ingots—with each project having minimum annual production capacity corresponding to 500 MW of modules manufacturing.

Solar power developers will earn assured power purchase agreements (PPAs) for triple the solar manufacturing capacity that they commit to set up; i.e., 1500 MW against 500 MW of solar manufacturing capacity—aggregating to solar plant capacity of 6 GW for a manufacturing capacity of 2 GW.

However, SECI has now notified that developers shall be provided assured PPAs for up to 2000 MW against 500 MW of cells/modules manufacturing, and up to 1500 MW against 500 MW of ingots/wafer manufacturing.

Thus, the total solar plant capacity now stands at 7 GW for manufacturing capacity of 2 GW.

Bidders are free to bid for all the four projects.

Further, SECI shall exercise the Green-Shoe Option to allocate additional capacities to the successful bidders equivalent to the capacities won by them, provided they match the lowest discovered tariff of the respective projects.

Solar plants set up under this RfS would be eligible for ISTS charges waiver, even if commissioned beyond March 31, 2022.

For manufacturing of solar cells, only advanced technologies like mono-PERC and hetrojunction, with average efficiency of minimum 21%, are allowed. Earlier-generation technologies like multicrystalline and polycrystalline, or old manufacturing lines/machines are not allowed. Modules produced must exhibit an average efficiency of minimum 19%.

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