Wind power auction yields record low tariff of Rs 2.64/unit

New Delhi: Wind power tariffs in India have dropped to a record low of Rs 2.64 per unit, discovered through the auction for 1,000 MW projects conducted by state-run Solar Energy Corporation of India (SECI), an official statement said on Thursday.

“Wind tariff in India touched lowest level of Rs 2.64 per kWh (kilowatt hour) in the second wind auction conducted by SECI,” a New and Renewable Energy Ministry (MNRE) statement here said.

“The tariff discovered is much lower than first wind auction concluded at Rs 3.46 per kWh in February this year,” it said

The government has set a target of generating 175 gigawatt of renewable energy by 2022.

For the 1,000 MW capacity auction held on Wednesday, 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 statement said.

The five winners selected for creating a total wind power capacity of 1,000 MW projects include ReNew Power for 250 MW projects quoting Rs 2.64 per kWh, Orange Sironj for 200 MW projects quoting Rs 2.64, Inox Wind for 250 MW projects quoting Rs 2.65, Green Infra for 250 MW projects quoting Rs 2.65 and Adani Green for 50 MW projects quoting Rs 2.65, it added.

The projects are to be commissioned within 18 months from the issue of Letter of Award to successful bidders.

The ministry also said the scheme provides for allotting additional 100 MW capacity to Central Public Sector Enterprises willing to undertake development of inter-state transmission systems for at the lowest bid tariff of Rs 2.64 per unit, for which they have to submit their proposal within 30 days from the declaration of results of the e-reverse auction.

It also said that the power from these projects will be supplied to obligated entities “for the fulfilment of their non-solar renewable purchase obligation at a pooled price of capacity selected”.

Earlier this year, auctions yielded the lowest solar power tariff of Rs 2.44 per unit.