Ceiling tariff in wind energy tenders to go

BENGALURU: In a move that could revive participation in wind bidding in a big way, the ministry of new and renewable energy (MNRE) plans to stop imposing ceiling tariffs on wind tenders, according to sources close to the development.

Recent wind and solar auctions conducted by the Solar Energy Corporation of India (SECI), an arm of MNRE, have all set ‘ceiling tariffs’ above which bids are not accepted.
Removal of these ceilings has been a long standing demand of the industry. Developers have been protesting against them, maintaining that they are too low and are thereby restricting auction participation, and in turn the growth of renewable energy in the country.


"This will definitely encourage participation. The ceiling tariffs in tenders have been unviable so far, they will at least become viable," a leading developer said, requesting anonymity.

Wind tenders issued by central agencies have been met with lukewarm participation over the past year. Only around 1.8GW was added between April and December last year, according to data collected by the Indian Wind Turbine Manufacturers Association (IWTMA). In 2018, 2.3GW was added.

"There is a plan to stop setting ceiling tariffs starting from SECI's 10th tranche of wind auctions," said a source close to the development.

MNRE secretary Anand Kumar could not be reached for a comment. It is not known whether ceiling tariffs will be removed for solar tenders as well. Sources say it is likely.

SECI's most recent wind tender (tranche 9) has been postponed five times because of tepid participation. The ceiling tariff for it was Rs 2.93 per unit.