SECI launches 4,800MWh FDRE tender backed by co-located energy storage

Bid submissions will close on 20 July 2026, with opening scheduled for 23 July. Developers will be required to pay a tender document fee of INR50,000 (US$528.12), alongside a processing fee of INR20,000 (US$211.25) per MW, capped at INR2 million (US$21,128), excluding applicable taxes. 

Under the scheme, developers can bid for a minimum contracted capacity of 50MW and a maximum of 600MW. The same 600MW ceiling will apply across affiliated companies, parent entities and group firms. 

SECI said the renewable generation asset and associated storage system must be co-located, although projects may be built anywhere in India. The requirement comes as India increasingly shifts towards co-located renewable energy and storage projects to improve grid reliability, optimise land and transmission infrastructure and enable greater deployment of dispatchable clean power.  

Under the tender, the storage component may be owned directly by the developer or secured through a third-party arrangement. 

Successful bidders will sign 25-year power purchase agreements (PPAs) with SECI, which will subsequently sell the electricity to distribution companies and other offtakers through back-to-back power sale agreements. 

The buying entity will nominate a four-hour daily peak-demand window during which developers must supply energy. Each megawatt of contracted capacity must deliver 4,000kWh during the designated peak period, translating to up to 400,000kWh for every 100MW contracted. 

SECI specified that energy storage systems charged using non-renewable electricity will not be considered renewable energy resources under the programme. Developers must ensure that all annual energy supplied under the PPA is renewable, although up to 5% of annual requirements may be sourced through green market purchases or bilateral renewable energy transactions to fulfil contractual obligations. 

The tender also allows developers to use storage assets for additional revenue streams outside contracted peak hours, including trading electricity on power exchanges or selling to third parties. However, PPA obligations will take precedence. Any sale of power to third parties while contractual supply commitments remain unmet will trigger financial penalties in addition to those applied for energy delivery shortfalls. 

Monthly under-delivery exceeding 10% of the required peak-hour energy volume will incur a penalty equivalent to 1.5 times the applicable PPA tariff on the shortfall quantity. 

The scheduled commencement of supply is set for 18 months after the effective date of the PPA. 

Financial qualification criteria are linked to the composition of each project. Minimum net worth requirements have been set at INR9.68 million (US$102,250) per MW of solar PV capacity, INR13.68 million (US$144,502) per MW of wind or other renewable generation capacity and INR2.4 million (US$25,351) per MWh of storage capacity. 

Bidders must additionally demonstrate financial strength through one of three pathways: annual turnover thresholds, internal resource generation capability or access to an in-principle credit facility. 

For projects incorporating wind generation, turbines must be sourced from models included in the Ministry of New and Renewable Energy’s Approved List of Models and Manufacturers (ALMM).