The Solar Energy Corporation of India (SECI) tendered 1,000 MW of Interstate Transmission System (ISTS)-connected wind power projects under Tranche-II. The bid-submission deadline is July 14, 2017. The SECI will inform eligible bidders once a reverse auction is commenced via email.

The projects will be developed on a build own and operate basis and the power produced will be sold to SECI. The SECI has also said that an additional 100 MW capacity can be awarded to Central Public-Sector Enterprises (CPSEs) willing to undertake development of ISTS-connected wind power projects on a “build own operate” basis without participation in the bidding process; however, such an allocation will be at the lowest bid tariff from the reverse auction.

The SECI has set an upper tariff ceiling at Rs.4 (~$0.062)/kWh. A bidder can bid for a minimum capacity of 50 MW and a maximum capacity of 250 MW. Minimum capacity that will be awarded to a CPSE will be 50 MW and the allocation of the capacity will be done on a first come first serve basis. The commercial opening date will be declared only when the project developer has commissioned at least 50 MW or 50 percent of the allotted project capacity.

The scope of work includes construction of the wind project along with the transmission network up to the grid connection point. All approvals, permits, and clearances required for developing the project (including connectivity), including those required from the state government and local bodies, will be garnered at the cost of the developer.

Developers are required to sign power purchase agreement (PPA) with SECI within six months from the date of issue of the award letter. Successful bidders will have to pay Rs.124,000 (~$1,926)/MW/project to SECI towards administrative overheads, liaising with state authorities, utilities, pre-commissioning, and commissioning expense.

In May Mercom reported that with the success of the first 1,000 MW wind auction, the Ministry of New and Renewable Energy (MNRE) launched another auction for 1,000 MW of projects under its wind program.

According to Mercom’s recent update on India’s energy mix, wind currently accounts for 32,279.77 MW in total installed capacity and 9.88 percent of the overall power generation.

Sampath has been part of the Mercom India research and news team since the company’s inception. He currently oversees all data and research relating to news published on the MercomIndia.com platform. Sampath received his Bachelor’s of Commerce Degree from Kuvempu University and Post Graduate Diploma in Management, from Indira Gandhi National Open University. More articles from Sampath Krishna.