Wind power tariff hits new low of Rs 2.43 in Guj auctions

NEDELHI: Wind power tariffs in the country have dropped to a new low of Rs 2.43 per unit in 500 MW reverse wind auctions conducted by Gujarat Urja Vikas Nigam Limited (GUVNL) on Thursday. The striking drop in wind power tariffs is being looked at as a matter of concern by the wind industry.

The tariffs are lower than the previous record of Rs 2.64 per unit in wind auctions conducted by Solar Energy Corporation of India (SECI) in October. The previous lowest tariff was Rs 3.46 per unit arrived at another SECI auction in February this year.

Leading industry players think that aggressive fall in tariffs do not make much sense as there is an entire pipeline of auctions announced by the government for wind and solar auctions.


Sprng Energy Private Limited and KP Energy Limited bid the lowest at Rs 2.43 per kWh, for 197.50 MW and 30 MW capacities, respectively.

Sunil Jain, CEO of Hero Future Energies, said there must be a rationale behind developers quoting such low prices. “The falling tariffs are upsetting the applecart, and the industry could do very well at tariff around Rs 2.75 per unit, which would be a win-win situation for all parties,” said Jain.