SECI Cancels 1,000 MW FDRE Tender to Supply Excess Renewable

The FDRE tranche was designed to maximise utilisation of energy that would otherwise remain curtailed and to establish a benchmark price for excess generation from round the clock projects that are often oversized to ensure delivery. The initiative aimed to enhance daytime grid availability, support Renewable Purchase Obligations and improve system flexibility, and developers were expected to bid strategically across portfolios to manage risk and reward. Industry observers noted that the tender structure had been seen as a potential reference for future commercial arrangements.

Under the tender rules, projects with an Inter-State Transmission System (ISTS)-connected Energy Storage System (ESS) were eligible to participate and were required to ensure a minimum daily supply of one point five megawatt-hour (MWh) per megawatt (MW) during solar hours. Any shortfall exceeding 25 per cent of the stipulated requirement would attract penalties at one point five times the Power Purchase Agreement (PPA) tariff, and SECI restricted participation to projects with existing signed PPAs so that excess supply would not interfere with contracted obligations. The tender included a 12-year PPA on offer from SECI for successful bidders.

The cancellation has been linked to a wider set of government actions that have seen renewable project approvals scaled back by more than 11.5 GW and to a possible lack of demand from distribution companies, although official clarification has not been issued. Market participants have said that further detail on the rationale and any replacement mechanism will be important to restore confidence and to understand implications for curtailment management and ancillary market development. SECI and the MoP are expected to provide more information in due course.