Tata Power Renewable Energy Limited (TPREL) has announced that it will sell 32 MW of its operating wind assets located in Satara district of Maharashtra.
Currently, the power from the 32 MW wind project is tied up with Tata Power Company – Distribution (TPC-D) under a long-term power purchase agreement. After fulfilling the conditions of the agreement, the assets and liabilities of the project would be transferred to the buyer.
The company has not disclosed the buyer of these assets.
“TPREL has executed a binding agreement to sell its 32 MW wind project in Maharashtra. This is part of our effort to restructure our portfolio to concentrate on building scale in few locations and venturing out of small, isolated sites thereby optimizing our operating costs. We will grow capacity both by organic and inorganic route,” said Praveer Sinha, CEO of Tata Power.
Recently, the Delhi Electricity Regulatory Commission (DERC) approved a power sale agreement signed between the Solar Energy Corporation of India (SECI) and Tata Power Delhi Distribution Limited (TPDDL) for procuring power from 50 MW of wind power projects. This procurement of power will be utilized for meeting TPDDL’s renewable purchase obligation.
TPDDL had petitioned the DERC to adopt a tariff of ₹2.45 (~$0.036)/kWh plus the trading margin of ₹0.07 (~$0.0010)/kWh for 50 MW of wind power.
As per the Global Wind Report 2018, nearly 51.3 GW of new wind energy projects were installed globally during the year, 4 percent less than the previous year. India installed 2.2 GW of wind assets in 2018, while the country installed 4 GW in 2017. The main reason for slowdown has been attributed to various execution challenges, removal of incentives and switching procurement method to reverse auctions from feed-in tariffs.
India’s wind energy sector has come a long way since the introduction of reverse auctions. In 2016, the Solar Energy Corporation of India (SECI) carried out the first-ever wind auction in India. The sector has benefitted immensely ever since. To date, 10.6 GW of wind projects has been auctioned and awarded in India.