Wind power tariff falls to Rs2.62/kWh in second auction of 1,000MW

Wind power tariff in India touched the lowest level of Rs2.64 per kWh in the second wind auction conducted by the Solar Energy Corporation of India (SECI) on Wednesday.

The tariff discovery is much lower than first wind auction that concluded at Rs3.46 per kWh in February this year. With improving technology and reducing tariffs, the ministry of new and renewable energy expects to exceed the target of 175GW by 2022.

Against the 1,000 MW capacity SECI received 12 bids totalling 2,892 MW capacity, of which 9 bids with a cumulative capacity of 2,142 MW were shortlisted for e-reverse auction.

SECI selected five among the lowest bidders, for a total of 1,000 MW, in a 13-hour-long auction that started at 3 pm on 4 October.

The winners include ReNew Power for 250 MW projects quoting Rs2.64/kWh, Orange Sironj for 200 MW projects quoting Rs2.64/kWh, Inox Wind for 250 MW projects quoting Rs2.65/kWh, Green Infra for 250 MW projects quoting Rs2.65/kWh and Adani Green for 50 MW projects quoting Rs2.65/kWh.

These wind projects are to be commissioned within 18 months from the date of issue of Letter of Award by SECI to the successful bidders.

According to the provisions of scheme, an 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 Rs2.64/kWh, for which they have to submit their proposal within 30 days from the declaration of results of the e-reverse auction.

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

After the success of the first wind auction resulted in discovery of record low wind tariff of Rs3.46 per kWh in February 2017, the ministry of new and renewable energy sanctioned a second wind auction scheme for setting up of 1,000 MW ISTS connected wind power projects on 4 May 2017. SECI issued bids on 30 May 2017 and bids were closed on 14 July 2017. The auction was earlier scheduled for 19 September 2017 but postponed to 4 October 2017 as an order from the the Central Electricity Regulatory Commission on the issue of grid connectivity being faced by the successful bidders in the first wind auction was awaited.