The Solar Energy Corporation of India Limited (SECI) has issued an expression of interest from eligible consumers to evaluate and consolidate demand for renewable energy procurement through virtual power purchase agreements (VPPAs). The outcome of this tender will be used to structure future VPPA tenders, including decisions on procurement volumes, supply configurations such as round-the-clock or peak-hour delivery, contract tenure, and payment security mechanisms.
According to the tender guidelines, the VPPA follows a contract-for-difference (CfD) framework, wherein the difference between the electricity market price and a predetermined strike price is settled financially between the generator and the consumer. Additionally, renewable energy certificates (RECs) corresponding to the contracted capacity will be transferred to the consumer. These certificates may be utilised to meet renewable consumption obligations (RCO) or other regulatory mandates. SECI will act as the facilitation agency by aggregating demand, structuring tenders, and standardising agreements. Subsequently, competitive bidding will be conducted by SECI for the discovery of strike prices, followed by the execution of bilateral VPPA agreements between generators and consumers. The deadline for bid submission is May 15, 2026.
Furthermore, the tender is open to entities obligated under RCOs as well as those voluntarily seeking renewable energy attributes through VPPA structures. According to the eligibility criteria, open access consumers, captive users, large commercial and industrial entities, public sector undertakings, data centres, and other high energy-consuming segments can participate. The bidders are required to specify their indicative demand, including proposed capacity in MW, preferred supply profile, contract duration, and commencement timeline. Additionally, they must provide regulatory details such as RCO applicability, compliance status, and the current renewable procurement mechanism, such as open access, REC purchase, or other mechanisms.
