In October 2016, India had issued a tender for procuring 1GW of wind power through reverse bidding, a first for the wind sector.
The tender was oversubscribed, with project developers entering bids for nearly 2.6GW worth of capacity.
The bids, which were opened today, found lowest bidders independently quoting INR 3.46/kWh.
Mytrah Energy — part of London-based Mytrah Group, Ostro Kutch Wind, Green Infra and Indian company Inox Wind Infrastructure won contracts for 250MW each, according to sources familiar with the development.
The record-low tariff is expected to have a significant impact on the sector considering that the prevalent feed-in-tariffs across the states are in the range of INR 4-6/kWh ($0.06-$0.09/kWh).
India's energy minister Piyush Goyal, tweeted: "After solar cost reduction below INR 3/unit [kWh], wind power cost down to INR 3.46/unit [kWh] through transparent auction. A green future awaits India."
A fifth bidder Adani Green Energy won 50MW in the auction.