SECI Awards 1 GW Round-the-Clock Renewable Energy Tender at Record-Low Tariff of INR 5.25/kWh

India’s state-owned renewable energy procurement agency Solar Energy Corporation of India (SECI) has achieved a new milestone in the country’s clean energy transition by discovering a lowest tariff of INR 5.25/kWh (approximately US$0.055/kWh) in its latest tender for 1 GW of firm and dispatchable renewable energy (FDRE) supply on a round-the-clock (RTC) basis.

The tender aims to procure reliable renewable electricity from interstate transmission system (ISTS)-connected renewable energy projects, representing India’s continued efforts to move beyond intermittent renewable generation and develop renewable power solutions capable of delivering stable electricity supply throughout the day.

Several renewable energy developers submitted competitive bids under the procurement process. Kengeri Prime Solar (180 MW), Resolven Four Energy (150 MW), Hexa Climate Solutions (150 MW), Hero Solar Energy (120 MW), EMIF II Holding (100 MW), and Purvah Green Power (70 MW) secured the lowest tariff of INR 5.25/kWh, while the remaining capacity was awarded to Juniper Green Energy at INR 5.26/kWh.

The tender requires selected developers to establish renewable energy projects integrated with energy storage systems (ESS) under a build-own-operate (BOO) model.

The awarded projects will supply firm renewable electricity to SECI through 25-year power purchase agreements (PPAs), after which SECI will distribute the procured renewable power to electricity buyers across India.

Unlike conventional solar and wind projects that primarily provide electricity according to weather-dependent generation patterns, FDRE projects are designed to provide more predictable and dispatchable renewable power. By combining renewable generation assets with energy storage technologies, these projects aim to improve grid stability and support India’s increasing demand for clean electricity.

The procurement mechanism is based on contracted power capacity, requiring renewable power developers to maintain a high level of electricity availability throughout the year. Developers must achieve a minimum Demand Fulfillment Ratio (DFR) of 90% during peak hours and 80% during off-peak hours, with limited relaxation allowed during specific months. The annual DFR requirement remains at 90%.

These operational requirements are designed to ensure that renewable energy projects can replicate the reliability characteristics traditionally associated with conventional thermal power plants, delivering firm electricity supply with high availability.

The successful completion of this tender highlights the rapid evolution of India’s renewable energy market, where large-scale solar, wind and energy storage technologies are increasingly being integrated into hybrid power solutions.

With growing electricity demand from industrial development, digital infrastructure and economic expansion, India is placing greater emphasis on renewable energy projects capable of providing dependable power rather than only additional generation capacity.

The latest SECI tender demonstrates the increasing competitiveness of energy storage-backed renewable projects and signals a broader shift toward dispatchable renewable energy models that could become a key component of India’s future power system.