SECI: Solar Energy Corporation of India
Solar Energy Corporation of India Ltd. (SECI) will be converted into a commercial company. SECI will generate and sell solar power and develop other sources of renewable energy. Cabinet also approves renaming SECI as Renewable Energy Corp. of India (RECI).
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SECI guidelines for Solar Energy
SECI is a subsidiary of the Ministry of New and Renewable Energy of the Government of India. It was established to facilitate the implementation of the National Solar Mission (NSM). It is the sole Central Public Sector Undertaking (PSU) devoted exclusively to solar energy. The mandate of the company has been expanded to encompass all aspects of renewable energy, and the company will be renamed Renewable Energy Corporation of India (RECI). The government-owned Solar Energy Corp. of India (SECI), which was founded in 2011 with charitable purposes, will be transformed into a growth-oriented commercial enterprise that will generate and sell solar energy and develop other renewable energy sources, the Union cabinet announced Wednesday. With a view to expanding and streamlining India's renewable energy sector, the cabinet also approved renaming SECI as Renewable Energy Corporation of India (RECI).
As a result of the move, the company will become self-sustaining and self-generating, with its own solar power plants that will generate and sell energy. Additionally, it will result in the company expanding its activities in other segments of solar energy, such as solar product and material manufacturing.
The company is responsible for the implementation of a number of government schemes, the most significant of which are the VGF schemes for large-scale grid-connected projects under the National Solar Mission, the solar park scheme, and the grid-connected solar rooftop scheme, as well as a variety of other specialised schemes such as the defence scheme, canal-top scheme, and Indo-Pak border scheme.
Additionally, SECI has developed solar projects on a turnkey basis for several public sector entities. Additionally, the company holds a power trading licence and is engaged in this activity by trading solar energy generated by projects established under the company's schemes.
Background
The SECI was incorporated on 9 September 2011 under Section 25 of the Companies Act, 1956 (now Section 8 of the Companies Act, 2013). It was founded as a not-for-profit organisation with the mission of promoting solar energy in India.
Though the SECI was not intended to generate profits, it did so in 2014–15, prompting the Union Cabinet, chaired by Prime Minister Narendra Modi, to approve the SECI's conversion to a Section 3 company under the Companies Act, 2013 and renaming it Renewable Energy Corporation of India (RECI)
The decision will have the following significant consequences:
1. SECI will become self-sustaining and self-generating, with its own solar power plants that will generate and sell electricity. It will also benefit the company's other solar sector activities, such as manufacturing solar products and materials, which were previously prohibited.
2. SECI will change its name to RECI and will then focus on developing all segments of renewable energy, including geo-thermal, off-shore wind, tidal, and others, in addition to solar energy.
3. SECI also faced significant obstacles in 2016. SECI has conducted nine auctions since India's reverse auction mechanism failed to stabilise the market and system in 2016. However, the majority of the projects were unable to proceed normally, and numerous bids were received in an inadequate amount of time.
India is the world's fourth largest wind producer, with a total installed wind capacity of 39.25 GW. By 2022, the government intends to achieve a wind energy capacity of 60 GW. Accelerated Depreciation (AD) and Generation-Based Incentives (GBI) as policy mechanisms aided initial growth, but the abrupt switch to the reverse auction mechanism in 2016 caused significant market disruption, and the regime has yet to stabilise. Solar Energy Corporation of India (SECI) has conducted nine tranches of auctions to date, while various states have conducted six. However, the majority of projects awarded through auctions have fallen behind schedule, and numerous tenders have been undersubscribed. At the moment, there is a dearth of literature on the status and challenges associated with wind energy reverse auctions in India, and this paper conducts a comprehensive study on the subject through a systematic review of the available literature. Land availability, transmission and evacuation infrastructure bottlenecks, state tariff revisions and renegotiation of PPAs, state discoms' poor financial health, financing issues, curtailment risk, and tariff caps are identified as major challenges facing wind power developers (WPDs), which the government must address on a priority basis.