The Indian government is likely to decrease the manufacturing component for the development of 5 GW of solar manufacturing capacity linked with power purchase agreements (PPAs) for inter-state transmission system (ISTS) connected solar photovoltaic (PV) projects. The bids for developing 5 GW solar manufacturing capacity linked with PPAs for 10 GW of solar PV capacity had been invited by Solar Energy Corporation of India Limited (SECI) in May 2018 on a build, own and operate (BOO) basis.
The modified tender will cover only about 3 GW of manufacturing capacity. Reportedly, the reduction in capacity has been proposed considering the fact that developers could quote high tariffs, making it unviable for discoms to buy power from these projects. However, a final decision on the same is yet to be taken.
The solar power developers will be selected through tariff based competitive bidding auction. SECI will enter into a PPA with the successful bidder for a period of 25 years. The scope of work involves setting up the manufacturing unit and the solar PV projects, as well as the transmission network up to the interconnection or delivery point.