India

India

Second 2GW auction sees a marginal increase

INDIA: The second federal auction for 2GW of new wind capacity, organsed by the Solar Energy Corporation of India (SECI), saw tariffs increase marginally from the historic lows recorded in the recent rounds.

India is on course to reach the 60GW by 2022 target on the back of successful auctions
India is on course to reach the 60GW by 2022 target on the back of successful auctions

The auction completed on 5 April 2018 had eight bidders cornering the whole 2GW capacity at tariffs ranging from INR 2.51/kWh ($0.0393/kWh) to INR 2.52/kWh ($0.0394/kWh).

These tariffs are just marginally over the record low of INR 2.43/kWh ($0.037/kWh) bid in the Gujarat state auction in December and the INR 2.44/kWh ($0.037/kWh) discovered in the first 2GW auction in February.

Despite the marginal increase from the last SECI auctions, the prices are still well below the average rate of thermal power production.

Developer (base country) Capacity won  Bid Price (INR/kWh)
Continuum Energy (Singapore)    250MW 2.51 
Actis (UK)  300MW 2.51 
Enel (Italy)  285MW 2.51 
Engie (France)  200MW 2.51 
Inox Wind (India)   100MW  2.51 
Adani Green Energy (India)  300MW 2.51 
Mytrah Energy (India)     300MW 2.52 
ReNew Power (India)   280MW 2.52 
 TOTAL  2,015MW  

Interestingly, this tender saw big entry of many foreign players that outbid entrenched Indian players.

The continued trend of low tariffs, especially with foreign players outbidding Indian players, suggests that the industry is able to sustain and grow with these tariff levels. 

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