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OCT 16 2017

Wind power capacity addition put on fast track, 4,500MW up for auction

  • Economic Times, ET Bureau / Hyderabad
  • Created: Mon 16th OCT 2017

 

The government is planning to auction 4,500 MW wind projects in the next four months to upscale the wind capacity addition in the country, sources say.

"An additional bid of 1,500 MW wind projects will be rolled out in October. There will be two more wind bids of the same capacity in December this year and February next year," a government official aware of the developments told ET.

The successive bids come in backdrop of meagre wind capacity addition this year, as the government is looking to enhance its capacity installation in the wind sector. “The government wants to speed up the capacity installation in wind projects," the official said. The auctions will be conducted by Solar Energy Corporation of India (SECI).

“The NIT (notice inviting tender) will be issued now (for the October bid), so that we don’t lose much time, and then just as the old bids are finalised, we will ask for the reverse auctions,” the official said.

Wind auctions conducted on October 4 this year saw record low wind tariffs at Rs 2.64 per unit. No capacity addition in the wind sector might have also resulted in the low tariffs, as equipment suppliers were left with huge inventory, developers and experts had told ET.

While such low tariffs may not be a repetition again, the government wants to ensure that tariffs do not go up again. These successive bids lined up over the next four months, may be postponed if developers come together and shoot up the prices.

"Ultimately if the prices go up, we will hold back the auctions. If there is a cartelisation, then the bid will not be allowed," the official added. The upcoming wind power auctions will also see an enhancement in the bid size for developers. “Now the developers may be allowed to bid for up to 400 MW projects,” the official said.

The government is expecting tariffs for both wind and solar power to go down with more new technology coming in, ETreported on October 12.

Power from renewable energy contributes about 17.5% to the country's energy mix. The government has set a target of 175 GW renewable energy capacity addition by 2022, of which 100 GW is to come from solar, 60 GW from wind, 10 GW from biomass and 5 GW from hydro projects.

Tags

Renewable Energy Solar Energy Wind Wind Power Energy Capacity Addition Power India solar power Solar Solar Energy Corporation Of India

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