SECI has awarded 440 MW worth of wind projects in its latest auctions seeking developers for setting up of 1800 MW wind power projects under Tranche-VIII.
The Solar Energy Corporation of India (SECI) has awarded only 440 MW worth of wind projects in its latest auctions.
The projects awarded were under the nodal agency’s latest tender seeking wind power developers (WPD) for setting up of 1800 MW ISTS-Connected wind power projects under Tranche-VIII. The tender was issued in June, and SECI had kept the ceiling tariff payable to each WPD for the entire tenure of the Power Purchase Agreement (PPA) fixed at Rs 2.85/kWh.
CLP (China Light and Power) won 250MW at Rs 2.83 per unit while Italian energy company Enel got 190MW at Rs 2.84 per unit. In the last wind auction conducted by SECI in May, tariffs were in the range of Rs 2.79 to Rs 2.83 per unit.
The original size of the tender was 1800 MW but since only two developers participated, the allotment was reduced to 440 MW.
The two firms will now set up the wind power projects on a Build Own Operate (BOO) basis, and sign a 25 year PPA with SECI. The Bidders will be free to avail fiscal incentives like Accelerated Depreciation, Concessional Custom Duties, Tax Holidays, etc. available for such projects as per prevailing conditions.
It is believed that the key reason for the low response for the tender is the limited availability of substations for connecting these projects. SECI had previously come out with a tender for the development of 5 substations, which these new wind projects are supposed to reconnect with, however, those projects are yet to be awarded.
We are continuing to grow our presence in India through this significant tender award, said Antonio Cammisecra, head of Enel Green Power.
“India has already become a giant in the global renewable arena, backed by its highly competitive and sophisticated tender system. We are contributing to this vibrant renewable market through our wealth of technological expertise and our sustainability-driven approach. This success in our second wind tender award in India is a strong demonstration of our commitment, capabilities and competitiveness in the Indian renewable energy market,” he added.
Recently, we had reported that SECI, after receiving only two bids for its 1200 MW solar tender (ISTS – V), had auctioned off solar projects worth 480 MW capacity to the two bidders. According to market sources aware of the development, during the auction held recently, 150 MW capacity has been allocated to GRT Jewellers at a tariff of Rs 2.53/kWh and 330 MW has been allocated to SB Energy at a tariff of Rs 2.65/kWh, despite bidding for 450 MW capacity.