Wind Energy News
Friday, 06 October 2017 16:38

ReNew Power, Orange Sironj lowest bidders at SECI’s 1,000 MW auction

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06/10/2017

ReNew Power and Orange Sironj Wind Power quoted identical record low bids to win projects in the second wind energy auction conducted by the Solar Energy Corporation of India (SECI). ReNew, which won 250 MW of the 1,000 MW auctioned, and Orange, which was awarded 200 MW, both offered to sell power at Rs 2.64 per unit.

There were three other winners, each bidding Rs 2.65 per unit — Inox Wind and Sembcorp-owned Green Infra Wind Energy, both winning 250 MW, and Adani Green Energy, which was awarded 50 MW. The winning tariffs are sharply lower than the previous lowest of Rs 3.42 per unit bid at an auction conducted by the Tamil Nadu Generation & Distribution Co. in August.

At SECI’s first wind auction in February, also for 1,000 MW, the winning bids fell to Rs 3.46 per unit. Inox Wind, Green Infra and Adani Green were among the winners in SECI’s February auction as well.

The latest auction proved to be a nerve-wracking, 13-hour long affair, which began at 3 pm on Wednesday and ended at 4 am on Thursday. The initial bids varied between Rs 3.15 and Rs 3.42 per unit. From 12 bidders originally, nine were shortlisted by SECI.

The latest bids stunned some wind energy stakeholders.

“What calculations have the winners made to arrive at such tariffs?” asked one developer. “They must be making unrealistic assumptions about the plant load factor they will be able to achieve. Such tariffs are not viable.”

Another developer wondered who would take the hit. “Will it be the developers or the wind equipment manufacturers? Someone’s internal rate of return is bound to fall drastically. The numbers don’t add up,” the developer said.

Solar tariffs, too, have fallen dramatically this year. The lowest tariff reached so far has been Rs 2.44 per unit at an SECI auction for projects at the Bhadla Solar Park in May. Both wind and solar power tariffs now compare favourably with rates of conventional power.

Additional Info

  • News Section: Wind Energy News
  • Month: October
  • Year: 2017
Last modified on Friday, 06 October 2017 17:01

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