The Central government is coming up with the reverse auction of 2,000 MW of wind power projects connected to the inter-state transmission system.
The Central government is coming up with the reverse auction of 2,000 MW of wind power projects connected to the inter-state transmission system. The Solar Energy Corporation (SECI) is expected to issue the request for selection (RfS) document for the bidding within 10 days. SECI would sign 25-year power purchase agreements (PPAs) with the winning bidders and sell the power to electricity distribution utilities of states in non-windy areas to fulfil their renewable purchase obligations (RPO). Apart from Andhra Pradesh, Himachal Pradesh and Karnataka, none of the states met their RPO norms in FY16. Winning bidders can set up the wind projects in locations of their choice, provided they match the criteria fixed by the government. A company can bid for a maximum capacity of 400 MW and a a minimum of 50 MW. The net worth of the bidder should not be less than Rs 1.5 crore per MW of the capacity quoted. Acquiring infrastructure to connect the upcoming wind projects to the electricity grid would be the responsibility of the developer.
Under-construction and un-commissioned projects as well as commissioned wind power generating units which do not have any long-term PPAs are also eligible to participate in the reverse auction. The news of the upcoming wind auctions should be a breather for the industry amid slowdown in capacity addition after the introduction of the competitive bidding system in February 2017, replacing the prevalent feed-in tariff (FiT) regime. Tariffs of as low as Rs 2.64 per unit were discovered in the latest auction for 1,000 MW of wind-based electricity conducted by SECI. The average wind tariff under FiT was Rs 4.5 a unit.
According to research firm Icra, only 421 MW of wind energy capacity has been set up in the country in the first half of FY18. More than 5,500 MW of wind projects were installed in FY17.