SECI's 5 GW manufacturing-linked solar auction gets good response

State-owned SECI's manufacturing-linked solar energy auction for 5GW capacity has evoked good response as Adani Green Energy, Azure and Navyug have submitted bids for a total of 10 GW projects.

Solar Energy Corporation of India's (SECI) for 5GW solar energy auction includes 1GW manufacturing component. Thus developers will have to set up solar equipment manufacturing capacity of 1 GW and power generation projects of 4 GW.

The tariff based reverse auction will be conduced by SECI later this week, a source said.

Adani Green Energy has submitted bid for 5GW, including 1GW manufacturing facilities, followed by Azure and Navyug which submitted bids for 2.5 GW each, including 500 MW manufacturing plants each, the source added.

These bids came in after several obstacles were faced in the manufacturing-linked solar power auctions. For past few months, renewable power project bids, particularly manufacturing-linked solar energy ones, were either extended or scrapped on account of poor response from the developers.

After successful auction, an investment of around Rs 6,000 crore is expected for setting up 1GW of solar manufacturing facilities, which would generate permanent direct employment of up to 10,000 people, the source said.

At present, India imports 95 per cent of its solar module requirement from China, leading to a forex outflow of around USD 10 billion per year.

This programme will be a boost for manufacturing, resulting in large scale development of industries and employment in India.

The success of this tender will help achieve the Prime Minister's objective of generating 450 GW of renewable energy by 2030.