Wind Power Tariff Hits All-Time Low Of Rs 2.64/Unit

The auction started at 1500 hors on October 4 and continued for over 13 hours.
The auction started at 1500 hors on October 4 and continued for over 13 hours.

New Delhi: Wind power tariff has dropped to an all-time low of Rs 2.64 per unit in an auction for 1GW projects conducted by the Solar Energy Corporation of India (SECI), according to an official statement. India has set a target of having 175 GW of renewable energy including 100 GW of solar and 60 GW of wind power by 2022. This is an important development after the solar power tariff fell to a record low of Rs 2.44 per unit earlier this year.

Wind power tariff had witnessed a sharp fall at Rs 3.46 per unit in the first wind power auction conducted by SECI for IGW projects earlier this year.

SECI was the nodal agency for the second wind auction for 1 GW projects that began on Wednesday afternoon and continued till wee hours this morning.

"India gets lowest wind tariff of Rs 2.64 per kWh (unit) in the second wind auction of 1,000 MW," the Ministry of New and Renewable Energy (MNRE) said in a statement on Thursday.

The wind tariff in India touched the lowest level of Rs 2.64 per kWh in the second wind auction conducted by the SECI on behalf of MNRE.

The ministry said the tariff discovered is much lower than the first wind auction concluded at Rs 3.46 per kWh in February this year. With improving technology and reducing tariffs, the ministry is not only confident of achieving the target of 175 GW by 2022 but also looking at exceeding it.

The ministry said that against the 1,000 MW capacity, SECI received 12 bids for 2,892 MW capacity of which 9 bids with a cumulative capacity of 2,142 MW were shortlisted for e-reverse auction.

The auction started at 1500 hors on October 4 and continued for over 13 hours.

It said that five winners selected for total 1,000 MW capacity wind power projects include ReNew Power for 250 MW projects quoting Rs 2.64/kWh, Orange Sironj for 200 MW projects quoting Rs 2.64/kWh, Inox Wind for 250 MW projects quoting Rs 2.65/kWh, Green Infra for 250 MW projects quoting Rs 2.65/kWh and Adani Green for 50 MW projects quoting Rs 2.65/kWh.

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

It further informed that as per provisions of 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/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 (renewable purchase obligation) 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, the MNRE had sanctioned second wind auction scheme for setting up of 1GW ISTS (inter state transmission system) connected wind power projects on May 4 2017.

The SECI issued bids on May 30, 2017 and bids were closed on July 14 2017. Auction was earlier scheduled for September 19, 2017 and the same was postponed to October 4, 2017 as CERC (the Central Electricity Regulatory Commission) order on the issue of grid connectivity that is being faced by the successful bidders in the first wind auction was awaited, it added.

(This story has not been edited by NDTV staff and is auto-generated from a syndicated feed.)