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Indian government announces second 1GW wind tender

CTBR Staff Writer Published 08 May 2017

The Indian government has announced its plans to launch a second 1GW wind power tender through its Ministry of New and Renewable Energy (MNRE).

Its announcement comes following the success of its first wind auction scheme, which is also of 1GW. The first auction saw wind power tariff hit a record low at INR3.46 ($0.054) per kWh.

According to MNRE, the memorandum of agreements (MoAs) for the 1GW of wind power under the first scheme was signed between PTC India and electricity distribution companies (discoms) of the states of Delhi, Bihar, Uttar Pradesh, Jharkhand, Assam and Odisha.

As per the terms of the MoAs, each of the discoms will buy wind power in the range of 50-449.9MW with an objective to meet their non-solar renewable purchase obligation (RPO). MNRE disclosed that the UP discom will buy 449.9MW, Bihar and Jharkhand discoms will buy 200MW each while Assam and Odisha will buy 50MW each of the wind power.

Solar Energy Corporation of India (SECI) had issued Letter of Award (LoA) to the successful wind power developers of the first wind auction with their projects to be commissioned inside 18 months from the issuance date of LoA.

Coming to the new scheme, the Ministry said that the tender will be open for all obligated parties buying wind power for compliance of their non-solar RPO.

Also, it said that SECI will sign power purchase agreements (PPAs) with selected wind developers. Besides, SECI will enter into back-to-back power sale agreements with buying electric utilities.

MNRE has also allowed a provision of 10% additional capacity for Central Public Sector Entities (CPSEs) under the scheme without taking part in the bidding. The Ministry though put a condition that the CPSEs will have to deliver wind power at lowest discovered tariff in the bidding process.

The first scheme for establishing 1GW ISTS connected wind power project was cleared by the Ministry in mid June last year.