What’s SECI’s role in tenders, auctions and pacts?

SECI, as well as other REIAs, floats tenders as per the allocated bidding trajectory using a “transparent electronic bidding method”, wherein all private or public parties are allowed to participate, the agency says.

It adds that after the e-bidding and e-reverse auction process, the “lowest tariffs” are discovered and the capacity is offered to DISCOMs across India for the power procurement.

“The same is also put up on SECI’s official website to enable various DISCOMs to avail the capacity at the discovered tariff. The DISCOMs, then approach SECI with their requirement of RE power. One bid normally consists of multiple developers and buyers. In some cases, bidders also suo-moto reduce the discovered tariff if subsequent to the bidding process, the tariff has come down and no DISCOM is willing to buy at the discovered tariff,” the agency says.

Notably, it has been alleged that both Adani Green and Azure Power cut the tariff post facto and suo motu. The first cut came 19 months later when both reduced the tariff from ₹2.92 to ₹2.54 on July 15, 2021 (from December 10, 2019) while the second cut came on November 3, 2021, when it was further reduced to ₹2.42 for Package II, III and IV.

DISCOMs, based on their internal approval process, provide consent for the offtake of power to SECI, says the agency, adding that it then enter into the power sale agreement (PSA) with them. After the PSA, it signs the power purchase agreement (PPA) with the selected bidders.

SECI says it monitors the progress of projects and helps in the resolution of issues. “Post project commissioning, SECI, as an intermediary power trader, procures the electricity generated by the projects and in turn sells it to the DISCOMs as per terms of the PPA/PSA, respectively.”

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