Six months after the first auction of projects, the second one has seen wind power tariff falling to a record low of Rs 3.42 per unit. The three companies that have qualified in the bidding, held by Tamil Nadu for 500 Mw of wind power projects, would now set up 900 Mw of wind power projects.
Regen Power Tech has won 250 Mw of projects at the lowest quoted tariff of Rs 3.42 per Mw. It is followed by Leap Green Energy, promoted by F1 racer Narayan Karthikeyan, at a bid of Rs 3.43 per unit for 250 Mw. Neyveli Lignite Limited won 400 Mw of projects at Rs 3.45 per unit. These are fixed tariffs for a period of 25 years.
These three bidders would qualify to set up projects, as Tamil Nadu has put a ceiling tariff of Rs 3.46 per unit. Anyone bidding below this qualified to set up power projects. In the first auction of wind power projects, held in February by central agency SECI, the tariff was Rs 3.46 a unit.
According to the tender document, the project location and constructing power evacuation infrastructure till the nearest sub-station is the prerogative of the wind power generator. The project developers have 10 months from the date of signing of the power-purchase agreements to construct their projects.
The bids received are much lower than the current average feed-in-tariff (FiT) of Rs 5 per unit in the wind sector.
The current government has retired the feed-in-tariff regime in the wind sector to introduce more competition and bring down prices. With an ambitious target, the new and renewable energy ministry plans to auction wind power projects every month. However, it will strictly monitor the bid prices to keep them at affordable levels, Piyush Goyal, minister of state for coal, power, new & renewable energy and mines, had said in July.
