Wind power tariff drops to Rs2.43 per unit in SECI's 500MW tender

Wind power tariff dropped to an all time low of Rs2.43 per unit kilowatt hour in an auction conducted by Gujarat Urja Vikas Nigam Ltd (GUVNL) on Thursday, giving a further boost to the government's clean energy initiatives.

In an auction for 500 MW wind power capacities, Sprng Energy and K P Energy quoted the lowest tariff of Rs2.43 per unit, reports quoting GUVNL MD Pankaj Joshi as saying.

In all, six companies, including Sprng Energy Private Limited, KP Energy Limited, Verdant Renewables Private Limited, Betam Wind Energy Private Limited, Powerica Ltd and ReNew Power Ventures Private Ltd, won bids to supply 500MW of wind power to GUVNL through competitive bidding.

The reverse auction, conducted after several delays, tariff rates quoted by bidders reached the country's lowest at Rs2.43 per kilowatt hour (kWh).

Sprng Energy and KP Energy emerged as the L1 bidders, quoting Rs2.43 per kWh tariff for the supply of 197.50 MW and 30MW respectively. The lowest tariff when bids were opened was Rs2.51, which dropped to Rs2.43 in reverse bidding, Joshi clarified.

Verdant Renewables, Betam Wind Energy and Powerica quoted tariff of Rs2.44 per unit each while Renew Energy quoted a tariff of Rs2.45.

There were 18 bidders when bids were opened yesterday, but only 12 qualified for the reverse bidding held later in the day.

This is the third time wind power tariff has fallen in 2017.

In October the per unit tariff quoted in second round of SECI's auction for one gigawatt capacity was Rs2.64.

The previous low was set earlier this year, in the first round of SECI auction when tariff touched a low of Rs3.46 per unit.

The fall in tariff will boost India's clean energy programme, which has set a target of achieving 60 GW wind energy capacity by 2022.

India has a current installed wind capacity of 32.7 GW. The government has planned to auction 10 GW each in 2018- 19 and 2019-20.