25/02/2017 Indiawindpowertarifffollowssolarroute,fallstorecordlowPrintViewLivemint

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Sat,Feb252017.1258AMIST

Indiawindpowertarifffollowssolarroute,fallstorecordlow
MytrahEnergy,GreenInfra,OstroKutchWind,InoxWindbidapowertariffofRs3.46perunittowinwindpowercontractsfor
250MWeachintheSECItender

NewDelhi:Windpowertariffsfelltoarecordlowina1gigawatt
(GW)tenderbystaterunSolarEnergyCorporationofIndia(SECI),
potentiallyplacingIndiaatthetippingpointontherenewableenergy
front.Solarpowertariffshadhitnewlowsatanauctionearlierthis
month.

MytrahEnergy(India)Ltd,IDFCAlternativesbackedcleanenergy
firmGreenInfraLtd,globalprivateequityfundActisLlpsplatform
OstroKutchWindPvt.LtdandInoxWindInfrastructureServicesLtd
bidRs3.46perkilowatthour(kWh)towincontractsfor250
megawatts(MW)each,saidseveralpeopleawareofthe
development.

Thesefirmsquotedthepriceatwhichtheywillsellelectricitytowin
contractsunderthetenderthatreceiveddemandfor2.6timesthe
IndiawindpowertariffsfellbelowRs3.46perkWhinthe1
gridlinkedcapacitybeingsold.Tariffshavehithertorangedfrom
GWSECItenderforwhichareverseauctionwasconducted
Rs3.9perkWhtoRs5.9perkWh.
Thursday.Photo:Bloomberg

AftersolarcostreductionbelowRs3/unit,windpowercostdownto
Rs3.46/unitthroughtransparentauction.AgreenfutureawaitsIndia,
saidPiyushGoyal,ministerforpower,coal,minesandnewandrenewableenergy,inatweet.

ThebidscomeinthebackdropofsolarpowertariffshittingarecordlowofRs2.97perkWhinanauctionofcontractstodeveloptheworlds
largestsolarpowerplantof750MWcapacityinRewa,MadhyaPradesh.Indiahassetatargetofgenerating60GWofwindpowerby2022,
upfrom28,700.44MWattheendofDecember.

Thepriceisnotanoutlier,aswasevidentbythebidsplacedbyAdaniGreenEnergy(MP)Ltd,ReNewPowerVenturesPvt.LtdandGamesa
RenewablesPvt.Ltd,whichalsobidlowtariffs.

Myowngutfeelingwasunlessthepricescomedown,thedemandmaynotbethereforwind.Andthatsexactlywhathappened,Goyal
saidinaninterview.

Thewindsectorhasbeenhitbyinordinatedelaysinsigningofpowerpurchaseagreementsanduntimelypaymentsdistributionfirmshave
shiedawayfromprocuringelectricitygeneratedbywindprojects.

TheotherfirmsparticipatingintheauctionincludedReGenPowertechPvt.Ltd,IndiasfirstFormula1driverNarainKarthikeyansfamily
promotedLeapGreenEnergyPvt.Ltd,SingaporebasedSembcorpIndustriesLtd,GamesaRenewablePvt.Ltd,ReNewPowerVentures
Pvt.Ltd,HeroFutureEnergiesLtdandRPSanjivGoenkaGroupsCESCLtd.

Expertstermedtheauctionagamechangerforthewindenergysector.

WiththediscoveredtariffofRs3.46,thisauctionwillbedisruptiveforthewindindustry.Itwillbeinterestingtoseehowbanks,OEMs
(originalequipmentmanufacturers)anddevelopersworktogethertocommissiontheseprojectsatthesetariffs,theprojectswillneedtobe
deliveredatasubstantiallylowerprojectcosttoensureviability.Also,thistariffshouldnotbeconsideredasabenchmarkinlowerwind
regimestates.Overall,thisisapositivedevelopmentasthisbringscompetitionandtransparencyinthesector,saidSrishtiAhuja,directorat
consultingfirmEY.

Thegovernmentplanstoachieve175GWofrenewableenergycapacityby2022aspartofitscommitmentstotheParisclimatechange
agreement.

Thelevelofparticipationintherecentsolarandwindauctionspointtothecomingofageoftheindustry.Theauctionshavebeenhard
foughtandhaveledtotighterpricingthanonewouldhaveforeseenevenafewmonthsearlier.Thisspeakstothegrowingconfidenceofthe
playersintheirabilitytodeliverprojectsontermsthataregloballycompetitive,saidVikramKailas,managingdirectorandchiefexecutive
officerofMytrahEnergyinanemailedstatement.

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25/02/2017 Indiawindpowertarifffollowssolarroute,fallstorecordlowPrintViewLivemint
Thepricegapbetweenelectricitygeneratedfromthermal,solarandwindprojectshasbeennarrowing.Thisisprimarilyduetocostsofsolar
modulesandwindturbinegeneratorsfallingby80%and20%,respectively,overthepastfiveyears.

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