To leverage the current decline in the wind tariffs, the Solar Energy Corporation of India (SECI) has tendered 2 GW of Inter-State Transmission System (ISTS)-connected wind power projects under Tranche-IV. The bid-submission deadline is March 7, 2018.
A single bidder can bid for a minimum 50 MW and maximum of 300 MW capacity. The successful bidders will enter into Power Purchase Agreements (PPAs) with the SECI for a period of 25 years.
The scope of work includes setting up of the wind power projects as well as the transmission network up to the delivery point.
All approvals, permits, and clearances required for the development and connectivity – including those required by state governments – have been made the responsibility of the project developer. The maintenance of the transmission system up to the interconnection point will also be the responsibility of the developer.
Though this is a global tender, Limited Liability Partnerships (LLPs) are not eligible for participation. The projects will be developed on a Build, Own, and Operate (BOO) basis and the timeframe for the commissioning of the project has been set at 18 months from the effective date of the PPA.
The SECI has fixed ₹2.93 (~$0.045)/kWh as upper tariff ceiling for this tender. Wind tariffs in the country have dropped considerably over the course of the past year, with a fall of over 24 percent between the two wind auctions held in 2017.
In October 2017, Mercom reported that the wind power tariff dropped below ₹3 (~$0.05)/kWh for the first time with the lowest winning bid of ₹2.64 (~$0.0413)/kWh quoted in the second 1 GW wind auction conducted by the Solar Energy Corporation of India (SECI), which was tendered in June 2017.
Previously, Mercom had reported, “The government plans to tender 1,500-2,000 MW in January 2018 and 1,500-2,000 MW in March 2018. A total of 10 GW will be tendered in the financial year 2018 and 10 GW in 2019, leaving a margin of 2 years for commissioning of projects.”
In December 2017, the SECI also tendered 2 GW of ISTS-connected wind projects under Tranche-III.