Adani Green Energy and Azure Power quoted the second lowest bid of Rs 2.70/unit, and is set to win contract for 450 MW and 120 MW capacity.
The Solar Energy Corporation of India’s (Seci’s) latest bid to set up 1,200 MW of wind power plants has discovered the lowest tariff of Rs 2.69 a unit, lower than the Rs 2.78 quoted by companies in the last auction held in March. According to sources, subsidiaries of ReNew Power, Sembcorp Energy, EverGreen Power quoted the lowest tariff for building 300 MW, 180 MW and 150 MW of wind projects, respectively. Adani Green Energy and Azure Power quoted the second lowest bid of Rs 2.70/unit, and is set to win contract for 450 MW and 120 MW capacity.
Including the latest one, Seci has so far held eleven reverse auctions for wind power since February 2017. The highest tariff of Rs 3.46 a unit was discovered in the maiden auction, and the lowest rate of Rs 2.44/unit was discovered in the third tranche in February 2018. India has set a target to raise the capacity of installed RE generation plants from the current level of 100 GW to 450 GW by the end of 2030.
Currently, solar power has become the key driver of capacity addition in the renewable energy sector, increasing its share in the overall green mix to around 45%, and has surpassed the wind power capacity for the first time in FY21. Analysts have pointed that the wind market may not be key driver in medium term due to the widening gap between solar and wind tariffs.
Solar rates plummeted to record low of Rs 1.99 a unit in December 2020. With rising prices of solar modules, which comprise about 60% of the total project expenditure for plants, tariffs in recent solar auctions have been around Rs 2.34/unit.