India's wind industry is still coming to terms with the record-low winning tariff of INR 3.46/kWh ($0.054/kWh) from in the federal wind auctions earlier this year.
Tamil Nadu state utility had sought bids for 500MW of wind capacity with a ceiling price of INR 3.46/kWh.
In response, three developers offered a total of 950MW of capacity; Regen Powertech offered 250MW at INR 3.42/kWh; Leap Green Energy bid for 200MW at INR 3.43/kWh; and NLC India, a coal power company diversifying into wind, bid the full 500MW capacity at INR 3.45/kWh.
Due to the bid results, the state utility is keen on signing contracts with all three developers and has sought regulatory approval for full 950MW capacity.
This development will further compound the problems of wind power developers struggling against utilities that are refusing to sign contracts based on feed-in-tariff rates.