A winning tariff of ₹2.76 (~$0.038)/kWh emerged in the 1,200 MW Tranche-V wind auction conducted by the Solar Energy Corporation of India (SECI).
Torrent Power quoted the lowest (L1) tariff for this tender to develop 115 MW of wind power projects.
In all, seven bidders had participated in the financial bidding, with tariffs ranging between a high of ₹2.85 (~$0.039)/kWh and a low of ₹2.76 (~$0.038)/kWh. A SECI official confirmed the culmination of the auction, adding that the tariffs discovered in the SECI auction were lower than that discovered in the recently concluded wind auction by the National Thermal Power Corporation (NTPC).
“Adani Green Energy quoted ₹2.76 (~$0.038)/kWh to develop 300 MW, Alfanar Group quoted ₹2.77 (~$0.0381)/kWh to develop 300 MW and SITAC Kabini Renewables quoted ₹2.77 (~$0.0381)/kWh to develop 300 MW. Ecoren Energy India Private Limited quoted ₹2.77 (~$0.0381)/kWh to develop 175 MW and ReNew Wind Energy quoted ₹2.77 (~$0.0381)/kWh to develop 300 MW, though the company will be awarded only 10 MW due to bucket filling method employed to award capacities to successful bidders,” added the SECI official.
When contacted, one of the big winners of the auction said, “This auction can spell trouble for NTPC. Distribution companies (DISCOMs) will be more amenable to signing PPAs with developers who have won in SECI’s auction as the rates in this auction are lower than that in the NTPC auction. The low rates in this auction can be an inhibitor for the NTPC projects.”
The L1 tariff quoted in this auction is ₹0.01 (~$0.00014)/kWh less than the lowest tariff quoted in NTPC’s wind auction. Moreover, the L1 tariff quoted in this auction is ₹0.25 (~$0.0034)/kWh more than the L1 tariff of ₹2.51 (~$0.0386)/kWh quoted in SECI’s recently concluded Tranche-IV ISTS-connected wind auction.
This tariff is also ₹0.34 (~$0.0048)/kWh more than the lowest ever wind tariff in India of ₹2.43 (~$0.0373)/kWh, quoted in the Gujarat Urja Vikas Nigam Ltd. (GUVNL) 500 MW auction.
The tariffs reached at this auction demonstrate that the wind tariffs in India in 2018 are settling around the ₹2.75 (~$0.0378)/kWh mark.
Saumy is a senior staff reporter with MercomIndia.com covering business and energy news since 2016. Prior to Mercom, Saumy was a copy editor at Thomson Reuters. Saumy earned his Bachelors Degree in Journalism & Mass Communication from the Manipal Institute of Communication at Manipal University. More articles from Saumy Prateek.