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Wind power tariff may nosedive to below Rs.5 per unit

Wind power tariff may nosedive to below Rs.5 per unit
The company has renewable energy projects in states like Maharashtra, Gujarat, Madhya Pradesh and Rajasthan.

Wind tariff is likely to fall below Rs.5 per unit – between Rs.4 and Rs.4.5 – in the auctions being conducted by state-run Solar Energy Corporation of India (SECI) to set up 1,000 megawatt (MW) capacity.

The SECI is likely to complete the bidding process by the month of January. “The average tariff of wind power is around Rs.5 per unit. SECI has not provided any benchmark tariff in the auction. But it is likely to range between Rs.4 and Rs.4.5 per unit, which would be below the average of Rs.5 per unit at present,” a source told Press Trust of India.

On response to the auction, the source said, “The companies generally submit bids on the last date. We are expecting good response. The last date for submitting financial bids is 9 January 2017. After that, it will take about three weeks to complete the procedure.”

Later last year, SECI had floated tenders for total wind power capacity of 1,000MW. The competitive bidding is tariff based and will be awarded to those quoting the lowest price (power tariff).

SECI will tie up long-term power purchase agreements of developers with non-windy states to whom power will be supplied through the central transmission utility.

Under the scheme, the government will not acquire land or equipment as developers will have to do that on their own. They would also run and maintain their plants.

According to the scheme, the project capacity will be determined by SECI for each tender, but will not be less than 25MW for a single project developer at one site.

SECI is the nodal agency for implementation of this scheme and is working on the e-bidding process followed by e-reverse auction for eligible bidders.

It will also develop a suitable mechanism for project monitoring. 

It has been stipulated that no separate funding shall be provided by the ministry to SECI to implement this scheme. The objective is to facilitate supply of wind power to non-windy states at a price discovered through transparent bidding.

The wind power deployment in the country started in early 1990s. The current wind power installed capacity is nearly 28.08 gigawatt (GW), accounting for around 9% of the total installed capacity of 310GW.

Globally, India is at fourth position, after China, the US and Germany, in terms of wind capacity installation. The Centre has set an ambitious target of 175GW power from renewable energy resources by 2022 and out of this, 60GW has to come from wind power.


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