Tamil Nadu became the first Indian state to conduct wind auction. The auction generated a record low tariff of Rs 3.42 per unit.
ReGen Powertech was the lowest bidders in the sale so was awarded the contract. It quoted for 200 MW at Rs 3.42 per unit, on the other hand, Leap Green Energy, asked for 250 MW at Rs 3.43 per unit, and public sector mining giant Neyveli Lignite Corp., offered Rs 3.45 per unit for the entire 500 MW failed to make a successful bid.
The size of projects to be allocated is yet to be decided. Tangendco is trying to get the state power regulator’s consent to increase the total allocation to 950 MW so that the winners can be assigned the project sizes they sought.
The lowest wind tariff until now had been Rs 3.46 per unit, achieved at the first wind auction held in February by Solar Corporation of India, a firm under the Ministry of New & Renewable Energy. Tangendco’s auction, the first by a state, had set a reserve price of Rs 3.46 per unit.
ReGen Powertech has so far been a manufacturer of equipment for wind farms and is venturing into operating its own projects for the first time.
Analyst feel that the company was able to quote the record low tariff of Rs 3.42 per unit because of the low interest rates of lending institutions for renewable energy projects coupled with the tender condition which includes a payment guarantee.