The Solar Energy Corporation of India (SECI) has cancelled a 1,000 MW Firm and Dispatchable Renewable Energy (FDRE) tender to supply excess renewable energy from ongoing projects. The tender to supply excess renewable energy to the Ministry of Power (MoP) was terminated by SECI approximately six months after its launch on December 26, 2025.
The FDRE-VIII tranche tender was created to make use of renewable energy, which is frequently underutilised or restricted. It was anticipated to assist in establishing a standard pricing for extra power from RTC projects, which are typically enlarged to guarantee delivery. The effort sought to support Renewable Purchase Obligations (RPOs), increase system flexibility, and improve daytime grid availability without the need for further capacity expansions. It was anticipated that developers with more diverse assets or larger portfolios would make strategic bids that balanced risk and profit across projects. The cancellation is undoubtedly something that was not anticipated given the 12-year PPA that SECI was offering.
To handle curtailment, SECI issued an FDRE tender.
Industry at the time applauded SECI’s decision to maximise the use of excess renewable energy produced by ongoing projects that would otherwise remain limited or underutilised.
Under the tender, developers with projects having an Inter-State Transmission System (ISTS)-connected Energy Storage System (ESS) were allowed to participate. The projects were required to ensure a minimum daily supply of 1.5 MWh per MW during solar hours.
Penalties equal to 1.5 times the Power Purchase Agreement (PPA) tariff would be applied to any deficit that exceeded 25% of the required amount. Only projects having signed PPAs were eligible, according to SECI, and the extra electricity delivered couldn’t conflict with the terms of those agreements.
In addition to a potential lack of demand from discom customers, the cancellation has now been connected to the government’s larger cancellations of renewable projects totalling more than 11.5 GW. On a decision this significant, hopefully further information will be made available shortly.
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