AGEL (Adani Green Energy Limited) and Azure Power have reportedly won the largest solar tender organized by the SECI (Solar Energy Corporation of India). The tender is linked to solar power plant installation and domestic solar manufacturing facilities development.
Through this solar tender, the corporation plans to install a 12-GW solar power plant, with the manufacturing capability of 3-GW per year through an investment of around $9 billion. In addition to increasing the solar generation assets, the tender aims at reducing the solar imports from China as this over-dependence has subjected the country’s economy to the external geopolitical risks.
The recent transition to solar power has been made under three main objectives, i.e. to reduce the electricity costs, address energy security by lowering imports, and achieve a low-carbon energy mix. There have been several campaigns calling for the reduction of import activities from China due to the ongoing Indo-China border tensions.
The total value of India’s solar imports from China and beyond in the FY17, FY18, & FY19 was $3,196.5 million, $3,837.6 million & $2,159.7 million respectively. Out of these, firms in China accounted for nearly 80% of the solar modules and cells that are used in India.
The SECI has been focusing on driving the investments from the private sector to expedite the solar PV manufacturing in India.
Currently, AGEL and Azure Power could add more solar power generation capacity and manufacture solar modules at the ratio of 4:1. Owing to this, AGEL agreed for a 1500-MW additional manufacturing and 6-MW power generation capacities. Azure had also offered a 500-MW of solar manufacturing and 2-GW of solar power generation capacities.
In addition, the 12-GW of solar power facilities to be installed under SECI’s tender are expected to considerably reduce the amount of CO2 emission. AGEL has reportedly stated that the upcoming solar projects under the SECI will also offer 400,000 direct & indirect jobs.