After solar, wind tariff at record low of Rs 3.5/unit

Photo: Reuters
Wind power sector witnessed history unfold on Friday for its first ever auction of projects. The winning bid received was Rs 3.46/unit by five companies.

The winning companies which will set up 250 MW each are Mytrah Energy, Inox Wind, Green Infra(Sembcorp India) and Ostro Kutch Wind Pvt. Ltd.

The bids received is extremely lower than the current average Feed-in-tariff (FiT) of Rs 5 per unit in the wind sector.

Sources said the winning companies had taken hit on their capex and would have to tie up for innovative financing to make up for the low tariff quoted.

Other bidders were Adani Green Energy, ReNew Power and Gamesa India etc which missed by a cinch.

The bidding started at Rs 4.47 per unit on Thursday afternoon. This comes in a week of solar power project witnessing historic low bid of Rs 2.97 per unit for Rewa power project in MP.

Solar Energy Corporation of India Ltd (SECI) held the bidding and is the designated agency for implementation of this wind power scheme.

The project site would be selected by SECI and would be offered to the winning companies.  Power Trading Corporation of India (PTC) is the agency for purchase and sale of wind power after entering into a power purchase agreement (PPA) for 25 years with the successful bidders.

The responsibility of getting the inter-state transmission system (ISTS) connectivity and Long Term Access (LTA) lies entirely with the wind project developer.

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