Developers jostle for capacity in India’s 1.2GW wind tender

The country’s latest wind-only tender sees more bidders offering lower prices, with the full 1.2GW volume being allocated

by Suuhas Tenddulkar 21 September 2021

Renew Power secured 300MW of capacity in India's latest tender, bidding INR 2,690/MWh ($37/MWh)

Indian auction regulator Solar Energy Corporation of India’s (SECI’s) latest 1.2GW wind tender was oversubscribed, with Renew Power (300MW), Sembcorp India (180MW) and Evergreen Energy (150MW) all securing offtake agreements at INR 2,690/MWh ($37/MWh) – the lowest tariffs in the tender.

Adani Green Energy and Azure Power offered the second lowest bid of INR 2,700/MWh to win 450MW and 120MW respectively. 

Other bidders could not secure capacity as the tender volume was exhausted.

The tender, announced in May 2021, requires bidders to set up projects on a build-own-operate basis including managing land acquisition and grid interconnection with all the project risks vested with the bidders.

The auction before that (SECI's tranche 10), the results of which were announced in March, had also been popular with developers, with Adani Green Energy securing 300MW with the lowest bid of INR 2,770/MWh. Ayana Renewables Evergreen Power and JSW Future Energy all bid INR 2,780/MWh to win 300MW, 150MW and 450MW, respectively.

The fact that all available capacity was awrded at the last two tenders coupled with the 2.9% reduction in the lowest bid prices in the latest round, seems to suggest that the current price-capacity-risk dynamics are robust. 

This development also seems to signal that the policy, regulatory and administrative constraints related to project agreements, land acquisition and grid interconnectivity have also been overcome, at least partially, if not fully.

In all, the government’s efforts and actions seem to be yielding results. 

Early this year, the government announced that it will accelerate renewable deployment through public sector units.

In line with this, the National Thermal Power Corporation (NTPC), India’s largest state-owned thermal power producer, recently released a 300MW wind tender due in October 2021. 

This is its second wind tender this year after a 300MW tender in January.

Interestingly, NTPC has also won 450MW wind solar hybrid capacity under SECI’s tranche 4 wind-solar hybrid tender.