Wind Power Tariffs Rise in NTPC 1,200 MW Auction

Economic Times reported, wind power tariffs climbed substantially in the latest reverse auction of 1,200 MW of wind power projects, held by NTPC. In the first wind project auction in four months, winning tariffs reached INR 2.77-2.83 per unit. The last auction in April, carried out by Solar Energy Corporation of India, had seen prices of INR 2.51-2.52. Industry insiders ascribed the increase to higher finance cost and limited availability of transmission facilities.

The lowest bid came from Sprng Energy, the renewable energy platform of London-headquartered private equity fund Actic LLP, which won 200 MW by offering to supply power at INR 2.77 per unit. Local developer Mytrah Energy won 300 MW at INR 2.79 and Singapore-based Continuum won 50 MW at INR 2.80. Both Renew Power and Hero Future Energies sought 300 MW at INR 2.81 and INR 2.82, respectively. French state-run EDF won 50 MW at INR 2.83 per unit.

Initially, NTPC was aiming to auction 2,500 MW of projects, but got bids only for 2,000 MW. After this, it reduced the tender to 1,200 MW.