SECI: Transforming India’s Renewable Energy Landscape Over a Decade

Table of Contents

1. Introduction to SECI
2. Growth Trajectory: From 750MW to 65.3GW
3. SECI’s Business Model
4. SECI’s Role in Controversial Contracts
   • Azure Power’s 2GW Contract
   • Adani Green’s 8GW Contract
5. Future of SECI in India’s Renewable Energy Goals

Introduction to SECI

Founded 13 years ago, the Solar Energy Corporation of India (SECI) is a miniratna public sector undertaking (PSU) that has played a pivotal role in shaping India’s renewable energy sector. While relatively low-profile, SECI has emerged as a critical player in driving the country’s solar and wind energy ambitions.

Growth Trajectory: From 750MW to 65.3GW

SECI’s growth over the past decade is monumental:

• 2014-15: Awarded generation capacity stood at a modest 750MW.
• 2024: The combined capacity has surged to 65.3GW.
  • Solar Energy: Over 40GW, leading India’s renewable energy expansion.
  • Wind Energy: 16.3GW.
  • Hybrid Solutions: 9GW.

SECI’s Business Model

SECI operates on a straightforward yet effective model:

1. Procurement: The corporation procures power from developers who win its competitive bids.
2. Distribution: Power is sold to distribution companies (DISCOMs) under long-term agreements.
3. Trading Activity: In 2023, SECI traded 43,000 million units of power, underscoring its role as a major energy trader.
4. Own Projects & Joint Ventures: SECI also invests in its renewable projects and partners with state utilities to bolster capacity.

SECI’s Role in Controversial Contracts

Azure Power’s 2GW Contract

• Awarded: December 2019.
• Scope: Supply 2GW solar power at ₹2.92/unit for 25 years.
• Manufacturing Requirement: 500MW of solar cells and modules.

Adani Green’s 8GW Contract

• Awarded: June 2020.
• Scope: Deliver 8GW solar power over eight years with an investment of $6 billion (~₹45,000 crore).
• Manufacturing Requirement: Establish 2GW of solar cell and module capacity.

Key Clarification: SECI Chairman RP Gupta emphasized that no wrongdoing or irregularity has been attributed to SECI in relation to these contracts.

Future of SECI in India’s Renewable Energy Goals

SECI is central to India’s renewable energy ambitions:

• Net-Zero Target: India aims to achieve net-zero carbon emissions by 2070, and SECI will play a significant role in scaling renewable capacities.
• Innovation & Incentives: SECI’s integration of production-linked incentive (PLI) schemes fosters domestic manufacturing and energy independence.

With its proven track record and ambitious projects, SECI is set to remain a cornerstone of India’s clean energy transition.

For the latest Business and Finance News, subscribe to Globalfinserve, Click here.