Major development for clean energy: After solar, wind energy tariff falls to all-time low of Rs 3.46 per unit

By: | Updated: February 24, 2017 12:25 PM

This is another major development for clean enegy after solar power touched all-time low of Rs 2.97 per unit earlier this month for Reva solar Park.

Wind power tariff dropped to a record low of Rs 3.46 per unit today in an auction of 1,000 MW capacity conducted by Solar Energy Corporation of India (SECI). (Reuters image)

Wind power tariff dropped to a record low of Rs 3.46 per unit today in an auction of 1,000 MW capacity conducted by Solar Energy Corporation of India (SECI).

This is another major development for clean enegy after solar power touched all-time low of Rs 2.97 per unit earlier this month for Reva solar Park.

“Mytrah Energy, Green Infra Wind Energy, Inox Wind Infrastructure Services, Ostro Kutch Wind and Adani Green Energy have emerged as lowest bidders. All these five firms have quoted Rs 3.46 per unit rate for the 1,000 MW capacities on block,” a source said.

Watch this video

The source added that the aggressive bidding, which started yesterday, went on till around 0200 hrs today despite an advisory issued by industry body to avoid bold bids.

The Indian Wind Turbine Manufacturers Association had reportedly issued an advisory to some players before the auction started in view of uncertainties due to GST implementation.

“After solar cost reduction below Rs 3/unit, wind power cost down to Rs 3.46/ unit through transparent auction. A green future awaits India,” Power, Coal, New and Renewable Energy Minister Piyush Goyal said in a tweet.

The power from these 1,000 MW capacity will be supplied to states which do not have adequate wind resources.

The auction assumes significance because India has set an ambitious target of having 60,000 MW of wind power capacity by 2022.

SECI is the nodal agency for implementation of this scheme and is working on the e-bidding process followed by e-reverse auction for eligible bidders.

Although SECI did not provide any benchmark tariff, the average figure for wind power is around Rs 5.

Globally, India is at the fourth position after China, the US and Germany, in terms of wind capacity installation. The Centre has set an ambitious target of 175 gw power from renewable energy resources by 2022 and out of this, 60 gw has to come from wind power.

Get live Stock Prices from BSE and NSE and latest NAV, portfolio of Mutual Funds, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Switch to Hindi Edition