Following the tepid response from solar developers to invest in hybrid projects, SECI has revised the ceiling prices and project capacities
The Solar Energy Corporation of India (SECI) has increased ceiling tariffs for two of its innovative tenders from Rs. 2.75 to Rs. 2.85 per unit to attract solar developers towards the fresh bids for the hybrid projects i.e. wind and solar power generation at the same site. The move has come amidst the buzz of low response from solar power bidders to set up the projects due to low tariffs.
An official from the ministry of new and renewable energy (MNRE) said that the department had decided to raise the ceiling price considering the interest rates and other factors. The ministry hopes to draw developers’ interests in these hybrid projects.
SECI has kept the deadline for submission of the bids at November 20. The manufacturing-linked solar projects have been kept at Rs. 2.85 per unit and those for the hybrid ones have been fixed at Rs. 2.70 per unit. The solar capacity has also been brought down from 2500 MW to 1200 MW. The department has been making efforts for the hybrid projects since these will aid in land costs and transmission facilities.
SECI projects delay
Low solar tariffs have been cited as the main reason behind SECI’s extension of deadlines. Solar developers have expressed their reluctance to engage in investing in these projects time and again, which has resulted in pushing the deadlines for as many as 6 times now.
The government of India has been pushing for increasing the local manufacturing of solar equipment to cut down on the current 90 per cent imports of solar panels and modules from China and Malaysia. There have been reports about solar developers facing difficulties in making their solar businesses viable due to low ceiling prices.
Earlier, in July, SECI auctioned around 10,000 MW linked to 3,000 MW of solar equipment production. The solar bidders were required to commit to 30 per cent of the manufacturing bid. For a 2,000 MW capacity, the developer was required to build 600 MW of equipment manufacturing capacity.