Second wind energy auction in India fOr 1 GW on 4 october, 2017

The government has decided to postpone second wind power auction for 1 GW capacities which was scheduled for 19 September, 2017 to 4 October, 2017 in view of some issues about transmission connectivity between states. Certain bidders and developers are grappling with the issue of inter state transmission connectivity. The government is waiting for a Central Electricity Regulatory Commission (CERC) clarification on inter state power transmission connectivity.

The Solar Energy Corporation of India (SECI), which is nodal agency for conducting this auction, has informed developers about this decision. According to the tender, one of the conditions in the bid is to have connectivity with Inter State Transmission System (ISTS). The responsibility to get connectivity is with the bidders.

The renewable energy players had sought immediate relief pertaining to connectivity for successful bidders for first wind power auction conduced earlier this year. The developers had also pleaded for providing long term solution for issue of squatting over the infrastructure in terms of bay space in ISTS substation.

The issue came up before the CERC after the central transmission utility, Power Grid Corp, filed a case for preventing underutilization of bays for connectivity granted to Wind or Solar generation projects.

In February, tariffs had dropped to all time low of Rs 3.46 per unit in India’s first-ever auction for wind energy projects. The auction was conducted by the SECI. For the second auction of 1 GW capacities, the SECI is the nodal agency for calling tariff based competitive bids to award 1 GW capacities.

The SECI had informed all prospective bidders on September 11, 2017 about E-reverse auction for 1 GW wind capacities on September 19, 2017. The investors and renewable energy players had pleaded before the SECI and Ministry of New and Renewable Energy (MNRE) for postponing the second wind bid till a final order from the CERC is received.