Economy

Wind power tariffs crash to ₹3.46/kWhr, set a new benchmark at auction

M Ramesh Chennai/New Delhi | Updated on January 27, 2018

The fall in wind tariffs mirrors a similar trend in solar tariffs. The new projects are expected to come up in Gujarat and Tamil Nadu

wind

Mytrah Energy, Inox, Green Infra and Ostro were lowest bidders

Wind power prices have crashed to ₹3.46 a kWhr in the country’s first ever auction of wind capacity. The least wind tariff today is ₹4.16 in Tamil Nadu, if one ignores the outlier ₹3.82 for some specific sites in Maharashtra.

This fall in wind tariffs mirrors a similar trend in solar tariffs witnessed earlier this month, when the prices fell to an unprecedented ₹3.29, averaged over 25 years.

Four companies, Mytrah Energy, Green Infra, Inox and Ostro Energy, have won rights to set up 250-MW wind projects each and sell energy to Power Trading Corporation, at a price of ₹3.46 a kWhr. It is understood that Mytrah and Green Infra would set up their projects in Tamil Nadu; the other two will go to Gujarat.

Mytrah Energy is an UK-based, AIM-listed, India-focused energy renewable energy company backed by Capital Group, Blackrock and Henderson funds. It is one of the larger wind power companies in the country with a portfolio of 1,000 MW. Green Infra, set up by IDFC’s private equity funds, is now 60 per cent owned by the Sembcorp group of Singapore. It has 500 MW of wind and solar assets in India. Inox is a wind turbine manufacturer. Ostro Energy, backed by Actis, is another private equity-funded renewable energy company, which has 650 MW of operational wind and solar assets.

The Adani group also quoted ₹3.46, but lost out because it pressed the button a trifle too late. When it did, all the 1,000 MW of capacity had been underwritten. ReNew Power, another large renewable energy producer, lost by one paise. The others in the race were Gamesa Renewable (which quoted ₹3.68), Surya Vidyut (₹3.75), ReGen Powertech (₹3.85) and Leap Green Energy (₹3.92). Of these, Gamesa and ReGen are essentially wind turbine manufacturers and the others are energy companies.

The bidding started around midday of Thursday and went on till the wee hours of Friday.

The winning companies have to complete their projects in 18 months.

Published on February 24, 2017

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