Wind power tariffs on Wednesday fell to an all-time low of Rs 2.64 per kilowatt-hour at an auction held by Solar Energy Corporation of India Ltd. The auction was conducted on behalf of the Ministry of New and Renewable Energy.
The auction was held for up to one gigawatt for several wind projects, and ended in the early hours of Thursday. The previous low was recorded in an auction in February – the first of its kind – that saw tariffs dropping to Rs 3.46 per unit.
ReNew Power Ventures Pvt Ltd and Orange Sironj Wind Power Pvt Ltd on Wednesday bid Rs 2.64 per unit to win contracts for 250 MW and 200 MW each. Two other firms, Inox Wind Infrastructure Services Ltd and Green Infra Wind Energy Ltd, bid for Rs 2.65 a unit for contracts of 250 MW each. The remaining 50 MW was won by Adani Green Energy (MP) Ltd at Rs 2.65 per unit.
The quoted prices were the rates at which these companies will sell power. “These wind projects are to be commissioned within 18 months from the date of issue of Letter of Award by SECI to successful bidders,” the ministry said in a release.
By 2022, the government wants to raise its renewable energy capacity to 175 gigawatt, as part of the Paris climate change agreement. Companies have been bidding for low tariffs for solar and wind projects to challenge the power generated by fossil fuels in the future.