The Solar Energy Corporation of India (SECI) is set to conduct a Reverse Auction on Thursday, November 29, 2024, for the development of a 2000 MW grid-connected solar power project, combined with a 4000 MWh Battery Energy Storage System (BESS).
The auction was earlier scheduled for 21 November, but it was later postponed to 29 November. No specific reason was provided to the bidders for postponement of the auction.
Sources said this reverse auction for new projects is being conducted even as developers of over 9500 MW of unsold capacity – awarded through multiple tenders over the last 2 years – continue to suffer in limbo, unable to secure long-awaited Power Purchase Agreements (PPAs) with DISCOMS or Power Supply Agreements (PSAs) with developers.
The growing stockpile of unsold renewable power is raising concerns within the industry, particularly as the government has set an ambitious target of tendering 50 GW of renewable power projects annually through FY 2028, added the source.
According to an industry insider, the signing of PPA or PSA for the unsold power from these old power projects is becoming more and more difficult as the tariffs from the newer or subsequent projects keep coming down.
A significant portion of the unsold capacity has been developed by private sector players, including major companies such as Renew Solar, ACME, Avaada, JSW Neo, Hero Solar, and NTPC.
The unsold power from these projects is also adding to the financial strain for the companies
