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Wind power tariff falls to new low of Rs 2.64 per unit; Renew, Inox, Adani among winning firms

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The Economic Times
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New Delhi: Wind energytariffs quoted by bidders in India fell to a new low of Rs 2.64 per unit in the latest and second round of auction for 1,000 Megawatt capacity projects conducted by the government. Five firms were selected as winners including Renew Power, Inox Wind, Green Infra, Adani Green and Orange Sironj.

“The wind tariff in India touched lowest level of Rs 2.64 per kWh in the second wind auction conducted by Solar Energy Corporation of India (SECI) on behalf of the Ministry of New & Renewable Energy (MNRE) on 4 October 2017,” an official statement said. It added that with improving technology and reducing tariffs the ministry is not only confident of achieving the target of 175 GW by 2022 but exceeding it.

The tariff discovered is much lower than the first wind power auction concluded at Rs 3.46 per kWh in February this year. Against the 1000 MW capacity SECI received 12 number of bids totalling to 2892 MW capacity of which 9 bids with a cumulative capacity of 2142 were shortlisted for e-reverse auction.

The auction started at 3 pm on 4 October and continued for over 13 hours. The five winners selected for total 1,000 MW capacity wind power projects include ReNew Power for 250 MW projects quoting Rs 2.64 per kWh, Orange Sironj for 200 MW projects quoting Rs 2.64 per kWh, Inox Wind for 250 MW projects quoting Rs 2.65 per kWh, Green Infra for 250 MW projects quoting Rs 2.65 per kWh and Adani Green for 50 MW projects quoting Rs 2.65 per kWh.

The ministry said these wind projects are to be commissioned within 18 months from the date of issue of Letter of Award by SECI to successful bidders. As per the provisions of the scheme, additional 100 MW capacity can be allotted to Central Public Sector Enterprises (CPSEs) willing to undertake development of inter-state transmission system (ISTS)-connected wind power projects at the lowest bid tariff of Rs 2.64 per kWh, for which they have to submit their proposal within 30 days from the declaration of results of e-reverse auction.

The power from these projects will be supplied to obligated entities for fulfilment of their non-solar RPO obligation at pooled price of capacity selected.

After the success of first wind auction resulted in discovery of record low wind tariff of Rs 3.46 per kWh in February 2017, MNRE had sanctioned second wind auction Scheme for setting up 1,000 MW wind power projects on 4 May 2017. SECI issued bids on 30 May and bids were closed on 14 July. The auction was earlier scheduled for 19 September but was deferred to 4 October as a CERC order on the issue of grid connectivity being faced by the successful bidders in the first wind auction was awaited

Author: sustainabilityoutlook