Power Sale Agreement for 1 GW Wind signed SECI

Power Sale Agreement (PSA) for 1,000 MW of inter-state transmission system (ISTS)-connected wind projects has been signed. The Solar Energy Corporation of India (SECI) entered PSAs with distribution utilities/companies (DISCOMs) of Uttar Pradesh, Bihar, Jharkhand, Assam, Punjab, Goa and Odisha for the supply of power from these projects.

The capacity was tendered by SECI in June 2017. In the auctionReNew Power quoted the L1 tariff of ₹2.64 (~$0.0413)/kWh to win contract to develop 250 MW of wind project, Orange Sironj Wind Power quoted ₹2.64 (0.0413)/kWh to develop 200 MW of wind project. Inox WindGreen Infra Wind Energy and Adani quoted a tariff of ₹2.65 (~$0.0414)/kWh to develop 250 MW each. Inox Wind and Green Infra were awarded 250 MW each and Adani was awarded 50 MW.

The project developers will be building their projects in the states of Gujarat, Tamil Nadu and Madhya Pradesh. According to a government release, the power purchase agreements (PPAs) for these projects will be soon signed between SECI and the developers.

When contacted a SECI official told Mercom, “The PSAs have been signed, PPAs are only a matter of two days. The onus now is to conduct the 2 GW wind auction per schedule.”

Mercom previously reported, to leverage a dip in wind power tariffs, the SECI will be tendering 2,000 MW of inter-state transmission system (ISTS)-connected wind projects to be developed across the windy states in December 2017.

Anand Kumar, Secretary Ministry of New and Renewable Energy (MNRE) was present at the PSA signing and said, “against the target of 60 GW for wind power, 32 GW have already been commissioned.  The Central Government in participation with the State Governments intends to issue bids of cumulative capacity of about 8 GW this year. Out of this, 5 GW (including present 2 GW) have already been bid out, 1,500-2,000 MW will be bid out in January 2018 and 1,500-2,000 MW in March 2018. A total of 10 GW will be bid out in the financial year 2018 and 10 GW in 2019, leaving a margin of 2 years for commissioning of projects.”

Image credit: Office of R.K. Singh

Saumy Prateek Saumy has been with MercomIndia.com as a staff reporter 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.