Coal News We love to talk!

MAY 30 2017

Tangedco to procure wind power through reverse auction

  • Economic Times, ET Bureau / Hyderabad
  • Created: Tue 30th MAY 2017

 

The Tamil Nadu Generation and Distribution Company Limited (Tangedco) plans to procure 500 MW of wind power through reverse auction with a benchmark rate of Rs. 3.46 per unit.

The State utility has filed a petition before the Tamil Nadu Electricity Regulatory Commission seeking a nod for the reverse auction. The plan is to procure 500 MW from wind power projects that have a minimum capacity of 25 MW.

If the plan comes through, Tamil Nadu would be the first State in the country to try reverse auction for wind projects when compared to the prevailing system of feed-in tariff that uses long-term agreements and pricing tied to cost of power production. In reverse auction, the tender process is adopted so the utility pays the minimum price for the power.

Lowest tariff

In Tamil Nadu, wind tariff is already the lowest in the country at Rs. 4.16 per unit. It is set to fall further with the benchmark tariff fixed at Rs. 3.46 per unit for the tender. The plan for reverse auction for wind energy was first launched by the Centre.

Solar Energy Corporation of India Ltd, a unit of Ministry of New and Renewable Energy, rolled out auction for procurement of 1,000 MW of wind power for supply to non-windy states. The auction was oversubscribed and the tariff hit a low of Rs. 3.46 per unit.

“The 2016 government of India tariff policy says all renewable power except municipal solid waste must be procured only through tendering. We are following that policy,” said a Tangedco official.

“Given the success of recent auctions, all states will increasingly look to procure both wind and solar through auctions,” Vinay Rustagi, managing director at consultancy firm Bridge to India, said. However, he also noted it is important to understand the crucial differences in different procurement schemes and structure the tenders properly. “The state boasts of the highest wind capacity in India, but Tangedco remains weak financially. There is significant grid curtailment for both wind and solar projects plus payments to developers have been delayed by as much as 12 months,” he added.

 

Tags

Tamil Nadu Tamil Nadu Generation and Distribution Corporation Ltd Grid Renewable Energy Solar Energy Wind Tariff Wind Power Ministry of New and Renewable Energy Energy Electricity Regulatory Commission Tamil Nadu Electricity Regulatory Commission Power Tariff policy Electricity India Solar Solar Energy Corporation Of India

Related News

  • Solar power juggernaut to keep rolling despite higher taxes under GST  Read more
  • North has surplus power but South cant access it  Read more
  • Approved solar parks up at 33 in 21 states; solar power capacity crosses 5,000 MW: Piyush Goyal  Read more
  • Fewer power cuts this year, says Tangedco  Read more
  • Power sector's dark days  Read more
  • Coal scam: Court allows Naveen Jindal to travel abroad  Read more
  • India's solar sector poised for good growth: Report  Read more
  • Govt should call for 5,000-6,000 MW tenders for wind power sector: IWTMA  Read more
  • Unit-I of thermal power station will be commissioned soon: Neyveli Lignite Corporation  Read more
  • Eastspring Investments to invest in wind power firm Watsun Infrabuild  Read more