Solar Energy Corporation of India Limited (SECI) has initiated a 1 GWh pilot tender for peak power supply under the Contract-for-Difference (CfD) construct, marking a move towards exploring market-linked mechanisms for supporting reliable renewable power during periods of peak demand.
Building on the pilot initiative, SECI has proposed scaling the CfD construct to 10 GW for the Indian power market. The proposed framework is aimed at examining how market-linked contracting mechanisms can contribute to deeper, more flexible and efficient power markets while supporting the growing integration of renewable energy and energy storage.
The CfD framework could provide greater flexibility in power procurement and encourage improved participation across the evolving power market ecosystem. It is also expected to explore opportunities for more efficient utilisation of available generation resources and stronger integration of renewable power and storage solutions.
The proposed scale-up could bring together a wider range of stakeholders, including renewable energy and storage developers, generators, traders, power exchanges, DISCOMs and large consumers. It may also create opportunities for new market-linked contracting structures and participation models.
According to SECI, the initiative reflects its efforts to develop innovative market mechanisms that can support the evolution of India’s power sector. The proposed framework is being explored alongside the increasing role of renewable energy and energy storage in meeting the country’s changing power demand.
SECI is also looking forward to continued policy guidance from the Ministry of New and Renewable Energy (MNRE) and other stakeholders as the potential of the CfD construct and its proposed scale-up are evaluated.
