The Solar Energy Corporation of India (SECI) has auctioned 480 MW of interstate transmission system (ISTS)-connected wind power projects. This was part of the 1,200 MW tender that was floated under tranche-VII.
Engie emerged as the lowest (L1) bidder in the auction. Malcolm Wrigley, the country manager of Engie India, said, “We have emerged as the lowest bidder by quoting a tariff of ₹2.79 (~$0.0396)/kWh to develop ISTS-connected wind power projects of capacity 200 MW.”
A SECI official confirmed the culmination of the auction adding that the L1, L2, L3 and L4 tariffs quoted are ₹2.79 (~$0.0396)/kWh, ₹2.81 (~$0.0398)/kWh, ₹2.82 (~$0.04)/kWh and ₹2.83 (~$0.0401)/kWh.
According to a market source, ReNew Power quoted a tariff of ₹2.81 (~$0.0398)/kWh to set up 50 MW of wind projects, Sprng Energy quoted ₹2.82 (~$0.04)/kWh to set up 100 MW, and Adani Green Energy quoted a tariff of ₹2.83 (~$0.0401)/kWh to set up 250 MW but will be awarded only 130 MW.
Mercom previously reported that SECI’s tender for 1,200 MW of ISTS-connected wind power projects on a pan-India basis under tranche-VII was undersubscribed by 50%. SECI had tendered the capacity in February 2019 and fixed a tariff cap of ₹2.83 (~$0.0401781)/kWh for this tender.
If a tender is undersubscribed, 80% of the capacity that has been bid for, is usually awarded. Bids totaling 600 MW had been submitted for this tender and therefore the implementing agency has decided to award 480 MW of ISTS-connected wind projects.
Another market source confirmed that Adani Green Energy has emerged as one of the successful bidders in SECI’s Tranche-VII ISTS-connected wind auction.
Wind tariffs are stabilizing above the ₹2.75 (~$0.0390426)/kWh mark in India, as has been observed from the results in successive wind auctions. The L1 tariff quoted in this auction is ₹0.03 (~$0.0004)/kWh less than the L1 tariff of ₹2.82 (~$0.0400361)/kWh quoted in the auction held by SECI for 1,200 MW of ISTS-connected wind projects issued under Tranche-VI.
The L1 tariff of ₹2.79 (~$0.0396)/kWh discovered in this auction is ₹0.01 (~$0.0001)/kWh less than the L1 tariff of ₹2.80 (~$0.0397)/kWh that was quoted in Gujarat Urja Vikas Nigam Limited (GUVNL)’s auction for 1,000 MW of grid-connected wind power projects.