SECI Proposes Scaling CfD Framework to 10 GW

The Solar Energy Corporation of India has proposed scaling its market-linked Contract-for-Difference (CfD) framework to 10 GW, backed by an initial 1 GWh peak power supply pilot, to drive flexible power procurement, better storage integration, and greater efficiency in India's clean energy market.

September 21, 2026. By Mrinmoy Dey

Solar Energy Corporation of India (SECI) has proposed scaling the Contract-for-Difference (CfD) construct to 10 GW for the Indian power market, with a view to exploring how market-linked contracting mechanisms can contribute to deeper, more flexible and efficient power markets.

SECI has already initiated a pilot tender for 1 GWh of peak power supply under the CfD construct, aimed at enabling reliable renewable power during periods of peak demand.

The proposed framework is envisaged to support greater flexibility in power procurement, improved integration of renewable energy and storage, enhanced market participation and more efficient utilisation of available generation resources, stated SECI.

It could also open new avenues for ecosystem development, bringing together renewable and storage developers, generators, traders, power exchanges, DISCOMs and large consumers, while enabling new market-linked contracting and participation models.

“The initiative reflects SECI’s continued commitment to developing innovative market mechanisms and nurturing an ecosystem for deeper and more efficient power markets, complementing the evolving structure of India’s power sector and supporting the increasing integration of renewable energy and energy storage,” SECI said.

It further added that as the power market continues to evolve, SECI aims to explore the potential of the CfD construct and its possible scale-up, with the objective of enabling deeper, more flexible and efficient power markets to support India’s clean energy transition.

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Business

Solar Energy Corporation of India

Contract for Difference

RE procurement under CfD mechanism

SECI pilot CfD peak power supply tender

Sacling CfD framework