India’s renewable energy expansion has entered a new commercial phase as the Solar Energy Corporation of India (SECI) moves beyond project execution and focuses on maximizing the value of electricity under its control. The state-owned agency has launched a nationwide selection process to identify a Power Trading Licensee (PTL) that can market renewable electricity from its existing and future portfolio across multiple buyer segments. Following the withdrawal of the 1,000 MW Firm and Dispatchable Renewable Energy (FDRE) tender, SECI issued a fresh tender to select a Power Trading Licensee to trade renewable power from its portfolio. The corporation aims to monetize renewable power from projects where buying entities have not yet commenced power offtake, projects with untied capacity, and SECI-owned renewable plants and Battery Energy Storage System assets that have not yet started supplying power.

Trading Model Targets Idle Renewable Capacity

The latest tender seeks an experienced and financially capable trading partner that can manage renewable electricity originating from projects already secured under SECI’s long-term Power Purchase Agreements while also accommodating future additions. Rather than concentrating solely on newly commissioned generation, the framework captures multiple categories of renewable electricity that remain commercially available for different reasons throughout the project lifecycle. Those opportunities include projects where buying entities have not yet started drawing contracted electricity, renewable assets carrying untied capacity, and generation from SECI-owned renewable facilities together with Battery Energy Storage System assets awaiting commercial offtake. Temporary trading arrangements under the applicable project categories will not affect the rights and obligations of SECI, the Renewable Power Developer, or the buying entity under the corresponding PPAs and PSAs.

SECI plans to appoint licensed electricity traders capable of placing renewable power into short-term, medium-term, or long-term markets depending on prevailing demand and power availability. The trading activity will operate within the applicable regulatory framework, including the Central Electricity Regulatory Commission Trading Licence Regulations, the CERC Trading Margin Regulations, 2020, and the relevant Grid Code and Market Regulations governing electricity transactions. Instead of relying on a single buyer class, the selected trading partner will gain access to multiple sales channels that include distribution companies, commercial and industrial consumers, bulk buyers, electricity exchanges, and other approved market mechanisms. The selected trading partner will have access to multiple approved channels for the sale of renewable energy, including DISCOMs, commercial and industrial consumers, bulk consumers, and market-based trading mechanisms.

Long-Term Commitments Come With Defined Commercial Risk

The selected trading licensee will carry a lock-in obligation for the volume accepted under executed trading agreements, creating stronger certainty around contracted power transactions. At the same time, SECI has clearly outlined the operational limits of its responsibility by stating that it will not assume liability for supply shortages resulting from lower renewable generation caused by grid constraints, force majeure events, regulatory directions, or other circumstances beyond its control. SECI has stated that it will not be liable for any shortfall in power supply arising from reduced project generation due to grid constraints, force majeure events, regulatory directions, or any other circumstances beyond its control. The tender specifies the commercial obligations of the selected trading licensee while defining the circumstances under which SECI will not assume liability for reduced power supply. The provisions establish the contractual responsibilities associated with renewable power trading under the proposed partnership framework.

Beyond temporary trading opportunities, SECI has opened a pathway for long-duration commercial partnerships involving projects that have not yet secured purchasing entities under existing procurement programs. Where renewable projects still lack long-term buyers despite successfully completing SECI’s competitive bidding process, the corporation proposes executing long-term Power Sale Agreements with the selected trading licensee for a period of twenty-five years. This structure applies to projects where SECI has already issued the Letter of Award to Renewable Power Developers, but distribution companies or other buying entities have not yet signed the corresponding agreements. For projects that have not yet secured a DISCOM or any other buying entity, SECI will execute long-term Power Sale Agreements with the selected Power Trading Licensee for a period of 25 years in accordance with the applicable provisions of the Request for Selection.

Future Collaboration Extends Beyond Electricity Trading

SECI has also indicated that the relationship with the selected trading partner could expand into direct project development rather than remaining limited to electricity transactions alone. The corporation may jointly pursue solar projects, wind developments, hybrid installations, Firm and Dispatchable Renewable Energy projects, Round-the-Clock renewable assets, grid-scale Battery Energy Storage Systems, and Pumped Storage Projects depending on future commercial opportunities. Where appropriate, these collaborations may operate through Joint Ventures or Special Purpose Vehicles with a minimum equity participation of twenty-six percent by the selected Power Trading Licensee. Investment structures, ownership participation, cost allocation, revenue sharing, and risk-sharing mechanisms will be determined through mutual agreement between participating entities. The tender also allows SECI and the selected Power Trading Licensee to explore joint development of renewable energy projects through mutually agreed commercial arrangements.

The tender introduces a structured classification system that organizes renewable assets according to their commercial status before entering the market. Category A consists of untied renewable energy capacity where Renewable Power Developers have already received Letters of Award from SECI but long-term Power Sale Agreements with purchasing entities remain pending. Another category captures projects that already possess executed PPAs and PSAs but temporarily generate commercially available electricity because buying entities have delayed offtake, suspended procurement, reduced contracted capacity, surrendered allocations, or because renewable generation becomes available before the Scheduled Commercial Operation Date. Under such circumstances, SECI may temporarily offer available electricity to the selected trading partner through bilateral sales, electricity exchanges, or other permitted market mechanisms without affecting the contractual rights and obligations of developers or buyers. These temporary arrangements preserve existing long-term contracts while ensuring available renewable electricity continues generating commercial value.

Storage Assets Strengthen Portfolio Flexibility

The tender extends well beyond renewable generation by incorporating Battery Energy Storage System assets developed or owned by SECI under the CAPEX model. Commercial terms covering pricing methodology, trading arrangements, tenure, and revenue-sharing mechanisms for these storage assets will be determined individually according to project-specific considerations rather than through standardized pricing formulas. For Battery Energy Storage System assets developed or owned by SECI under the CAPEX model, the tenure, pricing methodology, revenue-sharing mechanism, and other commercial terms will be determined by SECI on a case-by-case basis. The framework allows SECI to tailor commercial structures according to operational characteristics, technology configurations, and prevailing market conditions instead of imposing uniform contractual models across every storage project. These Battery Energy Storage System assets form part of the renewable power portfolio that may be covered under the commercial arrangements defined by SECI. 

The final category within the tender encompasses renewable energy projects, Battery Energy Storage Systems, and other energy infrastructure that SECI jointly develops with government agencies, public sector undertakings, Joint Ventures, Special Purpose Vehicles, and additional strategic partners. Individual project agreements and mutually negotiated commercial terms approved by SECI will govern tariffs, trading margins, contract duration, and revenue-sharing mechanisms for these projects. The respective project agreements, together with mutually agreed terms that SECI approves, will define the tenure, tariff, trading margin, and revenue-sharing mechanisms. The selected Power Trading Licensee may participate in renewable energy, Battery Energy Storage System, and other energy projects that SECI jointly develops with government agencies, public sector undertakings, Joint Ventures, Special Purpose Vehicles, and other strategic partners. The tender provides a commercial framework for trading renewable energy across projects operating under different ownership and partnership structures that SECI defines.