Altra Xergi Power Secures 200 MW FDRE Projects from SECI

Altra Xergi Power (O2 Power) has secured 200 MW at a tariff of INR 8.50/kWh in SECI’s auction for 8,000 MWh of renewable energy during peak hours under the FDRE-VI scheme, which mandates ISTS-connected RE projects with energy storage systems.

January 03, 2025. By Mrinmoy Dey

Altra Xergi Power (O2 Power) has won the Solar Energy Corporation of India’s (SECI) auction for providing 8,000 MWh (2,000 MW x 4 hours) of renewable energy during peak supply hours from ISTS-connected projects under the FDRE-VI scheme. The company secured 200 MW at a tariff of INR 8.50/kWh.

The total capacity to be awarded was later reduced to 656 MW as per a provision that allowed awarding only 80 percent of the capacity if bids received were less than offered capacity. Bidders only applied for 820 MW. ACME Solar Holdings and Avaada Energy were the other bidders.

The tender for this was issued in September 2024. It mandates selected bidders to begin power supply within 24 months of signing the power purchase agreement (PPA).

Key terms of the tender mandate the buying entity to select four peak hours starting from non-solar periods for energy offtake, with bidders required to deliver 4 MWh per MW of contracted capacity during these hours or face penalties of 1.5 times the PPA tariff for shortfalls.

Participants could submit a single bid for capacities ranging from 50 MW to 1,000 MW. SECI also allowed phased commissioning, starting with a minimum of 50 MW per phase. Eligible wind turbines and solar modules must meet MNRE's certification and approved models list requirements.

As per the scopes defined in the tender document, the RE Power Developer (RPD) will be required to set up ISTS-connected RE power project(s) with an Energy Storage System (ESS), including the transmission network up to the interconnection/delivery point with the primary objective of supplying RE Power to SECI.

It further clarified that ESS charged using a source other than RE power would not qualify as RE power.

Further, the developer also needs to take care of the identification of land, installation and ownership of the project(s), along with obtaining connectivity and necessary approvals and interconnection with the ISTS network for the supply of power to SECI.

"The Projects can be located anywhere in India at the locations chosen by the Bidder/RPD at its own discretion of cost, risk and responsibility. For a single Project, the RE generation components, along with ESS have to be co-located,” specified the tender document.

It further clarified that the project should be designed for interconnection with the ISTS in accordance with the prevailing CERC regulations in this regard. "Only the bidders who have already operational connectivity for Solar PV Projects at the Delivery Point are allowed to participate," noted the tender document.

Tags:

Energy Storage Systems

SECI FDRE-VI scheme