SECI’s 1.2 GW Wind Auction Sees Lowest Tariff of ₹2.82/kWh
Four developers quoted the lowest tariff
Four wind project developers- Ostro Energy (300 MW), Adani Renewables (250 MW), Srijan Energy Systems (150 MW), and Powerica Limited (50.60 MW), have quoted the lowest tariff of ₹2.82 (~$0.040)/kWh in the auction held by SECI for 1,200 MW of ISTS-connected wind projects issued under Tranche-VI.
Apart from them, SB Energy (Soft Bank) quoted a tariff of ₹2.83 (~$0.040)/kWh) to develop 600 MW but will be awarded only 324.40 MW due to bucket filling method applied to the awarded capacities in reverse auctions. Ecoren Energy also quoted the same tariff to develop 125 MW.
“We are happy with the tariff as we were not expecting that it will reach ₹2.82 (~$0.040)/kWh given the last auction in which the tariff discovered was ₹2.76 (~$0.036)/kWh. This shows that wind tariff is stabilizing now,” said a winning developer.
He added, “The reason for this tariff is that lesser number of sites are available and government support is lacking in the matter of land procurement.
Recently, Mercom reported that the 1.2 GW wind tender floated by SECI was oversubscribed by 1,125 MW and bids totaling 2,325 MW were submitted by a total of nine participants.
The procurer will be responsible for all the transmission charges and losses and any other charges beyond the delivery point and up to the drawl point. For any shortfall in production, the developer will have to pay to SECI 75 percent of the PPA tariff. For excess generation, SECI can procure the excess power at 75 percent of PPA tariff.
At any point of time, if the peak of capacity reached is higher than the allotted capacity and causes disturbance in the system at the point where power is injected, the developer will have to forego the excess generation and reduce the output to the allotted capacity to ensure compliance with grid requirement.
SECI had fixed an upper tariff ceiling of ₹2.85 (~$0.040)/kWh for this tender. Mercom previously reported that a winning tariff of ₹2.76 (~$0.036)/kWh was quoted in the 1,200 MW Tranche-V wind auction conducted by SECI.
Nitin is a staff reporter at Mercomindia.com and writes on renewable energy and related sectors. Prior to Mercom, Nitin has worked for CNN IBN, India News, Agricultural Spectrum and Bureaucracy Today. He received his bachelor’s degree in Journalism & Communication from Manipal Institute of Communication at Manipal University and Master’s degree in International Relations from Jindal School of International Affairs. More articles from Nitin Kabeer