In a move that could revive participation in wind bidding in a big way, the ministry of new and renewable energy (MNRE) plans to stop imposing ceiling tariffs on wind tenders, industry insiders told ET.
Recent wind and solar auctions conducted by the Solar Energy Corporation of India (SECI), an arm of MNRE, have all set ‘ceiling tariffs’ above which bids are not accepted.
Removal of the ceiling tariff has been a long standing demand of the industry. Developers maintain that tariffs are too low and it restricts them from participating as well as stymies the progress of renewable energy.
“This will definitely encourage participation. The ceiling tariffs in tenders have been unviable so far, they will at least become viable,” a leading developer said, requesting anonymity.
Wind tenders issued by central agencies have been met with lukewarm participation over the past year. Only around 1.8GW was added between April and December last year, according to data collected by the Indian Wind Turbine Manufacturers Association (IWTMA). In 2018, 2.3GW was added.
“There is a plan to stop setting ceiling tariffs starting from SECI’s 10th tranche of wind auctions,” said a source close to the development.