Wind power tariffs fall to Rs 2.43 per unit
Wind power tariffs dropped further to Rs 2.43 per unit in 500MW auctions in Gujarat, lower than October’s Rs 2.64/kWh and February’s Rs 3.46/kWh. Six companies won the bids. Falling prices have left the industry nervous as many more wind auctions are in pipeline.
The Indian Wind Energy Association (IWEA) earlier filed plea in Supreme Court saying falling tariffs under competitive auctions are not good for equipment manufacturers and that government’s power purchase guidelines were not final.
Government issues guidelines for wind power procurement
Chasing a tough 175GW by 2022 target, the government has issued new guidelines allowing transparent bidding, standardised processes, compensation for grid unavailability and cancelling of agreement, secure payments, and risk-sharing between power generator and off-taker. The norms will revive the sector in the windy states as it allows them to go for the bidding process themselves.
Wind tariff competitiveness to remain a challenge: ICRA
Rating agency ICRA has said that under the Centre’s competitive bidding programme, the backing down or haggling over PPAs by states will be a major challenge. The government proposes to issue bids for 5,000 MW by March 2018, 10,000 MW each in FY 2019 and FY 2020, so as to meet its 60,000 MW target by FY2022.