Tariffs for pure wind projects trend downwards after ReNew Energy inks PPA with SECI

In a positive development for the struggling wind energy industry, tariffs for pure wind projects trended downwards as ReNew Power, Sembcorp, Evergreen Power, , and Azure Power emerged winners in Solar Energy Corporation of India’s (SECI) 1200 megawatt (MW) tranche XI tender.

ReNew (300 MW), Sembcorp’s wholly-owned subsidiary Green Wind Infra Energy (180 MW), and Evergreen’s Anupavan Renewables (150 MW) won their bids at ₹2.69 per unit, while 450 MW went to Adani at ₹2.70.

Azure was allotted the remaining 120 MW at ₹2.70, even though they had bid for 300 MW.

This was the second SECI wind bid held this year. The earlier one, from tranche X with a capacity of 750 MW, fetched a lowest tariff of ₹2.77.

The companies that missed out on the tender were O2 Power (₹2.72), JSW Energy (₹2.80), Ayana Power’s subsidiary Project Nine Renewable (₹2.80), Torrent Power (₹2.84), and Enel Power’s Tunga Renewable Energy (₹2.89).

This comes as welcome news for the wind energy industry that has been facing a myriad of problems over the past few years, mostly arising from non-payment of existing dues by state-owned distribution companies (DISCOMs).

These problems have only worsened during the covid-19 induced lockdown, which completely halted the supply chain of ongoing projects and mounted costs. The efficiency of the power generated from wind turbines has also been trending downwards, due to uneven flow of monsoon winds and accumulated efforts of climate change over the Indian subcontinent.

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