MSEDCL has issued a tender to procure 200 MW of wind power on a long-term basis from intra-state wind power projects. The intra-state projects which are already supplying power to MSEDCL under the existing energy purchase agreements and have expired or are going to expire before March 31 2020, will be eligible to participate in the bidding process. MSEDCL will enter into a power purchase agreement (PPA) with the bidders for eight years from the date of the execution of the PPA or the date of expiry of the EPA for the existing wind power projects. The ceiling tariff for the projects is Rs 2.52 per kWh and the last date for the submission of bids is January 22, 2020.
Ever since competitive bidding was introduced in 2017 for allocating wind power projects, the segment has been in a constant state of flux. While the period of transition was initially expected to last a few months, the uncertainties left in its wake continue to hinder growth even after almost two years. It is true that wind power tariffs have gone down considerably since the move from the feed-in tariff (FiT) regime to the auction regime. However, annual capacity additions have slowed down significantly due to transmission and land constraints, putting the entire wind power ecosystem at risk. In addition, developers now have to face uncertainties regarding sanctity of contracts and the issue of non-payment by discoms. These factors are further dampening investor sentiment. Although efforts are being made to tackle these pain points, time is running out for India to achieve its 60 GW wind power target with just 36.93 GW of installed wind power capacity as of September 2019. Read more about the wind energy segment here: