India

India

Two new India tenders launched

India announced its sixth federal tender for 1.2GW, while Maharashtra is the first state to launch a wind-solar hybrid tender.

Wind and hybrid projects have received a boost with new tenders and favourable policies (pic: Hero Future Energies)
Wind and hybrid projects have received a boost with new tenders and favourable policies (pic: Hero Future Energies)

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The Solar Energy Corporation of India (SECI), the agency entrusted with conducting wind auctions, has released its sixth tranche (SECI 6) wind tender for 1.2GW.

The SECI 6 tender planned originally for 2.5GW and issued in May 2018 was later retracted and was scaled down to 1.2GW by the government as it argues that small tenders are more effective than larger ones.

The two major changes in the SECI 6 tender are an increase in maximum individual bid size from 300MW to 600MW and a ceiling tariff of INR 2,850/MWh ($40.2/MWh), noticeably more than the SECI 5 lowest tariff of INR 2,760/MWh ($38.9/MWh).

India has already auctioned a total wind energy capacity of 9.9GW with about 8.4GW from federal players and 1.5 GW equally spread across the three states of Tamil Nadu, Gujarat and Maharashtra.

Hybrid

After the first federal tender on wind solar hybrid in November 2018, Maharashtra has taken the lead as the first state to go for an open wind-solar hybrid tender.

The Maharashtra State Electricity Distribution Company Limited (MSEDCL) has issued a wind-solar hybrid tender due by 1 February 2019.

The utility wants to procure power from these projects to meet its renewable purchase obligation (RPO).

The tender indicates a two-stage tendering process for projects with a minimum capacity of 100MW.

However, the tender condition stipulates that the maximum capacity quoted by a single bidder will be the capacity that will then be put out for auction.

MSEDCL has already identified around 2.7km2 of land for the projects and has also taken the state regulator’s approval for the tender.

The utility has set a ceiling tariff of INR 2,750/MWh ( $38.8/MWh) for the tender. This ceiling price is only slightly above the last wind-solar hybrid tariff of INR 2,670/MWh ($ 37.7/MWh).

Policy

Another state Andhra Pradesh announced new progressive policies for wind and wind-solar-hybrids.

Under the new policies, wind and hybrid projects will benefit from intra-state open access, and have government benefits available to them. The policies run for the next five years.

The state government has set a target to achieve 18GW of renewable energy capacity by the financial year 2021-22.

This uptake in activities on the wind and wind-solar hybrid areas from the government is an encouraging sign for the industry, which has been facing myriad issues related to transmission and land acquisitions.

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