SECI extends ISTS charges waiver for solar manufacturing tender by two years

The Solar Energy Corporation of India (SECI) has amended the Request for Selection (RfS) for setting up of 10 GW of ISTS-connected solar PV power projects linked with 3 GW of solar manufacturing capacity.

According to the latest amendment, solar power developers will have to set up cumulative annual solar manufacturing capacity of 3 GW, over a maximum period of 36 months from the execution of power purchase agreements (PPAs).

In addition, the ISTS charges waiver which was applicable up to March 31, 2022 has now been extended up to March 31, 2024. In case of commissioning delay beyond March 21, 2024, the developers will be liable to bear the applicable ISTS charges. However, in such cases, ISTS charges or the tariff reduction due to the delay in project commissioning (whichever is higher), will be applicable on the developer but both ISTS charges and tariff reductions due to the delay will not be levied simultaneously.

SECI will enter into PPAs with bidders which will be signed in four packages. The first package will comprise solar PV projects having a cumulative capacity of 10 per cent of the awarded project capacity, while the remaining three packages will each comprise projects having 30 per cent of the awarded capacity.

The successful bidders will also have to submit performance bank guarantees (PBG). The initial validities of the PBGs amounting to Rs 600 million will be until 51 months from the effective date of the package-I PPAs; while the initial validity of the PBGs amounting to Rs 4 billion will be until 72 months from the effective date of the package-I PPAs. In case the successful bidders are unable to submit the Rs 4 billion PBG with initial validity of 72 months, they can submit an amount of Rs 400 billion with initial validity of sixty months.

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