SECI to Issue India’s First Demand Aggregation Utility Scale Renewable Energy Tender

On 17th April 2026, Solar Energy Corporation of India (SECI) released an Expression of Interest (EoI) to evaluate market preparedness and demand for renewable energy procurement through Virtual Power Purchase Agreements (VPPAs). Under this initiative, SECI will function primarily as a demand aggregator, facilitating bilateral VPPA arrangements between shortlisted renewable energy generators and participating consumers.

The EoI invites participation from a wide range of entities, including those obligated under the Renewable Consumption Obligation (RCO) framework as well as organizations voluntarily seeking renewable energy attributes through VPPA structures. Eligible participants comprise open-access consumers, captive users, large commercial and industrial enterprises, public sector undertakings, data centers, and other electricity-intensive consumers.

Table: Details sought from the consumers under the EoI

Source: SECI

Through this exercise, SECI aims to gauge prevailing market demand along with consumer preferences related to power supply structures, contractual provisions, and commercial terms. Based on aggregated demand insights, SECI intends to design VPPA tenders where the strike price will serve as the principal bidding parameter. The proposed procurement framework is expected to prioritise supply during evening peak periods, round-the-clock (RTC) delivery windows, or other non-solar time blocks to minimise settlement volatility and improve commercial viability for both generators and consumers.

This initiative introduces an alternative pathway for bulk electricity consumers to meet their RCO compliance requirements beyond the green buyout price mechanism notified by the Central Electricity Regulatory Commission. Given the progressively rising trajectory of green buyout prices and the associated financial risks of non-compliance, long-term renewable procurement instruments such as VPPAs are likely to gain prominence.

Figure: Annual trend of RCO non-compliance buyout price

Source: CERC

Within a short span, SECI has launched two contracts-for-difference (CfD) based procurement initiatives, a 500 MW Request for Selection (RfS) targeting the supply side and this EoI focused on demand aggregation. Successful implementation of these tenders could establish a strong proof of concept for CfD-linked renewable procurement mechanisms, which are still at a nascent stage in India’s renewable energy market.

Over time, such mechanisms are expected to enhance the role of merchant power markets and exchanges, where currently only about 5–10% of India’s electricity generation is traded. Wider adoption of CfD backed VPPAs could significantly accelerate corporate decarbonization efforts and support India’s broader ambition of achieving 500 GW of renewable energy capacity by 2030.