BREAKING: Winning Bids of ₹2.85-2.87/kWh Quoted in MSEDCL’s 500 MW Wind Auction
The MSEDCL had fixed ₹3/kWh ($0.047) as the upper tariff ceiling for this tender
March 6, 2018
The Maharashtra State Electricity Distribution Company Limited (MSEDCL) has auctioned 500 MW of grid-connected wind projects to meet its non-solar Renewable Purchase Obligation (RPO).
The lowest quoted (L1) tariff in the auction stood at ₹2.85 (~$0.043)/kWh.
Two bidders, namely Adani Green Energy and KCT Renewable Energy Private Limited, quoted the L1 tariff of ₹2.85 (~$0.043)/kWh to develop 75 MW of wind projects each.
Inox Wind, Mytrah Energy, and Hero Wind Energy Private Limited quoted a tariff of ₹2.86 (~$0.044)/kWh. While Inox Wind won the bid to develop 50 MW, Mytrah Energy Private won the bid to develop 100 MW and Hero Wind Energy Private Limited won the bid to develop 75.60 MW.
Torrent Power Limited quoted a tariff of ₹2.87 (~$0.044)//kWh to develop 146 MW.
The L1 tariff of ₹2.85 (~$0.0437)/kWh quoted in MSEDCL’s auction was 0.41 paise (17%) higher than the ₹2.44 (~$0.037)/kWh quoted in the recently-conducted SECI wind auction. The quoted tariff was also 0.42 paise (17%) higher than the lowest ever quoted wind tariff of ₹2.43 (~$0.037)/kWh.
When contacted, an MSEDCL official told Mercom, “We are happy with the auction result. Now, just the PPA signing remains for the work to commence.”
When asked about the capacities won by the bidders, the MSEDCL official said, “Barring Torrent Power, all the firms will be developing the capacities they bid for. Torrent Power will be developing 124.40 MW.”
Elaborating on the auction results, the MSEDCL official added, “Reverse auction is always about who bid the lowest first. On that basis, firms had already won bids for 375.60 MW. The remaining capacity is being awarded to Torrent Power”.
The MSEDCL had fixed ₹3/kWh ($0.047) as the upper tariff ceiling for this tender. Recently, Maharashtra Electricity Regulatory Commission (MERC) approved MSEDCL’s petition to procure the power it needs to meet its RPO.
In the financial year (FY) 2016-17, MSEDCL reported a non-solar RPO shortfall of 1,822 Million Units (MUs). In the first quarter of FY 2017-18, MSEDCL reported a solar RPO shortfall of 970 MUs. The RPO requirement from non-solar sources in FY 2017-18 is 10.5 percent.
Saumy is a senior staff reporter with MercomIndia.com covering business and energy news since 2016. Prior to Mercom, Saumy was a copy editor at Thomson Reuters. Saumy earned his Bachelors Degree in Journalism & Mass Communication from the Manipal Institute of Communication at Manipal University. More articles from Saumy Prateek.