Wind power tariff drops below Rs 3/unit in 2nd auction

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Wind power tariff has dropped to all-time low of Rs 2.93 per unit in the ongoing auction for award of 1 GW capacities by the Solar Energy Corporation of India (SECI), an industry source said.

"The lowest quoted wind power tariff in the second bidding for 1 GW capacities by the SECI came down to Rs 2.93 per unit," an industry source said. The auction started at 1500hrs on Wednesday.

"When the bidding started today, nine players were in the fray. But at present, five developers are continuing in the tariff-based competitive bidding," the source said.

"The bidding is still continuing and the final lowest tariff would be announced after completion of the process."

Earlier this year, the SECI had conducted the first ever wind power auction for 1 GW capacities where the tariff dropped to Rs 3.46 per unit. There were speculations that tariff may not fall below Rs 3.2 per unit in the second auction in view of issues related to inter-state connectivity.

"The CERC in its order had clarified that the successful bidders under the auctions for renewable projects cannot jump the queue. That was a discouragement for all those developers who did not have inter-state connectivity which is a prerequisite for bidding under the second wind auction," a renewable energy project developer said.

Earlier this year the solar power tariff has also dropped to all time low of Rs 2.44 per unit. But the developers are grappling with the issue of inter-state connectivity for evacuation of power from these projects, the developer said.