After the lowest bidding in solar power tariff, wind power tariff also witnessed lowest bidding in auction conducted by the state-run Solar Energy Corporation of India (SECI) for 1 GW (Gigawatt) wind power contracts.
SECI is public sector undertaking designated for implementation of wind power scheme in the country. In the current bidding, ReNew Power and Sirong quoted the lowest bid of Rs 2.64 per kilowatt for 250 MW (megawatt) and 200 MW, respectively. Previously, SECI tenders were auctioned at Rs. 3.64 per kilowatt which was also much lower than the then prevailing rate of Rs.5 per kilowatt.
The government has changed the pricing system from feed-based tariff to auction system, aiming for more competitive prices. Renewable energy segment is witnessing lower prices due to changed operational dynamics in the industry. This was largely due to significant drop in solar photovoltaic cells and wind turbine generators in previous years.
The current wind power tender was also won by Green Infra (250 MW), Inox Wind (250 MW) and Adani Green Energy (50 MW) for attractive bid of Rs.2.65 kilowatt. The government’s ambition of 160 GW renewable energy generation by 2022 is expected to make the prices more competitive.
However, the power generation companies are finding it difficult to fund these projects as banks are reluctant to finance these projects due to lower PPAs and poor transmission and distribution networks in the country resulting in lower realisations. Also, the state electricity boards’ delay in payments hurt the operational performance of the company.
Source: dsij.in
