India to conduct wind power auction next Tuesday
India will conduct the much-awaited auction to award 1 gigawatt (GW) of wind power contracts next Tuesday. The auction to be conducted by state-run Solar Energy Corp. of India (SECI) comes in the backdrop of India’s wind sector transitioning from a feed-in tariff regime to tariff-based competitive auctions. The reverse auction will begin at 2pm on 19 September.
While feed-in tariffs ensure a fixed price for wind power producers, the February auction conducted by SECI saw wind power tariffs in India following the solar route and hit a record low of Rs3.46 per kilowatt hour (kWh) for another 1GW tender. This, in turn, caused disruptions with some states looking to renege on their offtake commitments for projects awarded at a comparatively higher tariff.
Those qualified for the technical bid stage will be eligible for the financial bid stage. Once the financial bids are opened, a reverse auction process will be run to select the developers. In a reverse auction, the developers are chosen on the basis of the lowest prices offered.
India has a target of installing 175,000MW of renewable energy by 2022. Of this, 100,000MW is to be generated by solar projects and 60,000MW by wind projects. The country had an installed wind capacity of 32,279.77MW as of 31 March.