The Ministry of New and Renewable Energy (MNRE) has approved a pilot for the Contract for Difference (CfD) programme for renewable energy. Under the approved framework, the Solar Energy Corporation of India Limited (SECI), acting as the nodal agency for this implementation, will issue a tender for 500 MW of renewable energy capacity. The selected projects will be required to supply 1,500 MWh of power during three non-solar hours each day.
Furthermore, SECI will define the specific supply hours within a designated time band, providing operational flexibility to developers. The projects will be developed under a build-own-operate model, with a contract duration of 12 years. Developers will be selected through a competitive reverse bidding process, with a maximum allocation of 125 MW per bidder.
SECI will bridge the gap between the competitively discovered strike price and the prevailing market-clearing price. Settlements will be linked to zonal day-ahead market (DAM) prices, with bidding conducted in a structured sequence starting with the Green Day-Ahead Market (GDAM), followed by DAM, and then the Real-Time Market (RTM).
Additionally, the government has established a Rs 760 million stabilisation fund to manage pay-ins and pay-outs to support the settlement framework. Profits and losses will be shared daily between the renewable energy generator and the CfD pool in a 30:70 ratio, with monthly reconciliation. Moreover, if the pool becomes zero or negative at any stage during the 12-year period, SECI will be required to replenish it using its own resources.
