After the second 1GW federal auction saw tariffs falling to INR2.64/kWh, there was a general consensus that wind power prices had hit rock bottom in India.
But the final bids undercut even the lowest solar tariff of INR2.44/kWh from earlier in 2017.
Actis-backed Spring Energy secured the highest allocation with 197.5MW. Verdant Energy took 100MW.
The federal government has now announced new standards for state wind power auctions.
Project capacity is limited to 25MW if it supplies power to one state, and 50MW if it supplies more than one.
Wind projects should have a minimum capacity utilisation factor (CUF) of 22%, and will be penalised if they fall below that mark.
If the CUF is higher than specified in the bid document, the excess power will be paid for by the buyer at 75% of the tariff decided.
A third federal wind power reverse auction — for 2GW of capacity — has been announced. The deadline for submitting bids is 16 January 2018.
Like the previous 1GW auctions, this will offer a 25-year power purchase agreement, but the maximum size of projects has been raised from 250MW to 400MW.