India’s wind tariffs stayed close to their record low in the latest auction by the Solar Energy Corporation of India, three people told BloombergQuint requesting anonymity.
ReNew Power, Green Infra Ltd., Torrent Power Ltd. and Inox Wind Ltd. quoted Rs 2.44 per unit in the bidding that concluded on Tuesday evening, the people said. Adani Green Energy and Alfanar Energy quoted Rs 2.45 per unit, the said. The corporation auctioned 2 gigawatt capacity—the largest in the year ending March yet.
Wind tariffs fell to their lowest Rs 2.43 per unit in the last auction conducted by Gujarat Urja Vikas Nigam Ltd. for 500 MW capacity. Pricing has fallen after India switched from the feed-in regime that promised fixed rates to competitive bidding last year.
“The tariffs are similar to the previous state auction, suggesting that while bidders are getting good sites and equipment competitively, all gains are passed on in tariff,” said Kameswara Rao, partner (energy, utilities and mining), PwC India. “Bidders are gearing up to prepare for upcoming auctions far earlier.”
The central and state governments intend to issue bids for about 8 GW this year. That’s part of India’s target to reach 175 GW of renewable energy by 2022, with wind contributing 60 GW. Half of this, the Ministry of New and Renewable Energy said, had been commissioned till November.
“The prospects for wind are looking better given its localised supply chain and supply of wind sites identified over the years,” Rao said. “The auction schedule gives preparatory time to put these together and is likely to attract more global investment.”