Gujarat 500 MW wind power auction delayed again

Gujarat 500 MW wind power auction delayed again
18/11/2017 , by , in ALLIED

The proposed auction to procure 500 MW wind power in Gujarat, which was expected to be conducted this week, has been deferred further. No future timeline has yet been provided. Sources in the Gujarat Urja Vikas Nigam (GUVNL) could not verify the exact reason for the postponement. The decision coincides with the Supreme Court, on Thursday, admitting an appeal by the Indian Wind Energy Association (InWEA), which seeks to invalidate the proposed auctions. The association moved the apex court after the Gujarat High Court dismissed its petition on Tuesday, for the second time in a month. The tenders for the auction were initially invited in June. The last date for bid submission had been extended to November 7 from October 24.

Sources in GUVNL had told FE earlier that the state electricity board has received 18 bids totalling 2,000 MW for the auction. InWEA’s original petition stated that the Gujarat Electricity Regulatory Commission’s (GERC) cannot adopt tariffs achieved through auctions in the absence of any bidding guidelines by the central government. The ministry of new and renewable energy had published a draft wind bidding guidelines in April. The final guidelines from the ministry on the issue are not out yet.

Tamil Nadu discovered the wind tariff of Rs 3.42 per unit the competitive bidding process, based on the draft guidelines, carried out by its state power utility. The wind auction in Gujarat is expected to fetch tariffs close to the record-low rate of `2.64 a unit discovered earlier this month in the second competitive bidding for 1000 MW conducted by SECI. About half the capacity wind projects from the above auctions under the Central government scheme, won by Inox and ReNew Power, are likely to be commissioned Gujarat.

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