ET BureauRelated
Only two bidders have evinced interest in a wind energy tender floated by state-owned Solar Energy Corporation of India, alluding to the tepid response wind tenders have been receiving lately from developers.
The 1,200 MW tender was issued by SECI, the central government's nodal agency responsible for conducting auctions, for the second time this week at a ceiling tariff of Rs 2.93 per unit. It had been revised from Rs 2.85 per unit in an effort to stimulate participation.
Adani Green Energy and Italian energy company Enel submitted bids for 200MW and 66MW respectively, industry insiders said. It has been postponed to December 5. Projects can be built anywhere in India. "We have extended the time line in view of inadequate response," said a top SECI executive.
A senior official at the renewable energy ministry said it is unlikely the ceiling tariff would be increased any further. "Discoms will not buy power today if the tariff is more than three rupees," the person said, requesting anonymity. But experts attribute the poor participation to lack of suitable land and transmission capacity, not the ceiling tariff.
"Only those developers that have access to necessary infrastructure can implement projects within the required time scale,” said Vinay Rustagi, managing director of renewable energy consultancy firm Bridge To India.
Gujarat, one of the best wind producing states, has been slow in leasing land to winners of auctions conducted by central agencies. “Land is available in Tamil Nadu but it is extremely expensive,” said Rustagi. If developers were to move to other states, wind speeds there would be much lower, leading to reduced output, he said.
NTPC's recent wind tender, issued last month, got no participation. “We will see a lull in the allocation of wind capacity for another year or so at the very least,” Rustagi said.
The 1,200 MW tender was issued by SECI, the central government's nodal agency responsible for conducting auctions, for the second time this week at a ceiling tariff of Rs 2.93 per unit. It had been revised from Rs 2.85 per unit in an effort to stimulate participation.
Adani Green Energy and Italian energy company Enel submitted bids for 200MW and 66MW respectively, industry insiders said. It has been postponed to December 5. Projects can be built anywhere in India. "We have extended the time line in view of inadequate response," said a top SECI executive.
A senior official at the renewable energy ministry said it is unlikely the ceiling tariff would be increased any further. "Discoms will not buy power today if the tariff is more than three rupees," the person said, requesting anonymity. But experts attribute the poor participation to lack of suitable land and transmission capacity, not the ceiling tariff.
"Only those developers that have access to necessary infrastructure can implement projects within the required time scale,” said Vinay Rustagi, managing director of renewable energy consultancy firm Bridge To India.
Gujarat, one of the best wind producing states, has been slow in leasing land to winners of auctions conducted by central agencies. “Land is available in Tamil Nadu but it is extremely expensive,” said Rustagi. If developers were to move to other states, wind speeds there would be much lower, leading to reduced output, he said.
NTPC's recent wind tender, issued last month, got no participation. “We will see a lull in the allocation of wind capacity for another year or so at the very least,” Rustagi said.
Get Unlimited Access to The Economic Times
