Lowest Tariff of ₹2.77/kWh Quoted in SECI’s 1.2 GW Wind Auction

Adani Renewable Energy, Ayana Renewable Power, Evergreen Power, and JSW Future Energy won 1.2 GW of wind power projects in the Solar Energy Corporation of India’s (SECI) auction to select developers for interstate transmission system (ISTS) connected wind projects (Tranche X) in the country, according to Mercom’s sources.

Adani Renewable Energy won 300 MW of wind projects quoting ₹2.77 (~$0.0382)/kWh. Meanwhile, Ayana Renewable Power (300 MW), Evergreen Power (150 MW), and JSW Future Energy (450 MW) quoted ₹2.78 (~$0.0383)/kWh. JSW had placed bids for 600 MW but was awarded only 450 MW under the bucket-filling method.

The auction received bids for 3.15 GW of projects from 11 developers with quoted tariffs peaking at ₹3.39 (~$0.0467)/kWh.

The winning bid of ₹2.77 (~$0.0382)/kWh is about 7% lower than the lowest tariff quoted in the previous auction by SECI for 2.5 GW ISTS-connected wind projects (Tranche IX) in August 2020.


Background: 

SECI had originally floated the tender to select developers for 1.2 GW of ISTS-connected wind power projects in December 2020. The scope of work includes setting up the wind power projects to supply power to SECI, identifying and acquiring land for the projects, installation, ownership of the projects, and acquiring connectivity and long-term open access (LTOA) approvals for connection with the ISTS network.

The lowest tariff discovered in a wind tender in the country was ₹2.43 (~$0.0335)/kWh quoted in the Gujarat Urja Vikas Nigam Ltd. (GUVNL) 500 MW auction in Gujarat in December 2017. Evergreen Power had participated in the auction partnering with K.P. Energy and won 30 MW of projects quoting ₹2.43 (~$0.0335)/kWh. The 30 MW Evergreen Project at Mahuva-II site in Bhavnagar is expected to get a commissioning time extension and the construction is expected to start in Q3 FY 2021. The subsidiary Evergreen Mahuva Windfarms Private Limited formed to build the 30 MW project has K.P. Energy holding a 51% stake and Evergreen Power with 48%.

Meanwhile, the lowest wind tariff SECI has discovered so far was ₹2.44 (~$0.0336)/kWh in its auction for 2 GW of ISTS-connected wind projects under Tranche III in February 2018.

Bidders in the present auction were allowed to place bids for a minimum of 50 MW and a maximum of 1.2 GW in multiples of 10 MW. The declared annual capacity utilization factor (CUF) for the project must be not less than 22% for 25 years – the entire duration of the PPA. Wind power developers must maintain generation to achieve an annual CUF of at least 80% and not over 120% of the declared value.

According to Mercom’s India Tender Tracker, SECI has tendered 13.9 GW of wind projects under Tranche I to IX, of which 10.3 GW has been auctioned.