MNRE reviews competitive bidding mechanism for procurement of power from wind power projects

The Ministry of New and Renewable Energy (MNRE) has revised the auction process for wind energy projects. The MNRE had constituted a committee to examine proposals for ensuring faster capacity addition in the wind sector. The committee has submitted its report and the recommendations have been examined. After carefully considering the report, following measures has been taken:

  1. The bids for a cumulative capacity of about 8 GW will be issued each year from January 1, 2023 onwards up to 2030.
  2. To ensure that wind energy capacity comes up in all the 8 windy states, every bid will be a composite bid consisting of state specific sub-bids for each of the 8 windy states. The power generated from capacity established in each of the state sub-bids will be pooled and offered at pooled tariff to all procurers. The pooling of tariff will be as per the notified Electricity (Amendment) Rules, 2022.
  3. The bids will be on a single stage two envelope closed bid basis. One envelope will contain the technical bid, and the other envelope will contain the financial bid. The envelope containing the technical bid will be opened first and the financial bid of only those bidders who qualify in the technical bid will be opened.
  4. The bids will specify the capacity to be installed. One sub-bid will be specific to one state. The cumulative size cap in any one of the B-states in one year will not be more than 2 GW every year. SECI or implementing agencies may determine the minimum and maximum bid size based on wind RPO targets of states.
  5. SECI will issue bids of cumulative capacity of about 8 GW in calendar year 2023 up to 2030. A detailed breakup of this capacity shall be issued by SECI.
  6. Necessary amendments in the Guidelines for Tariff Based Competitive Bidding Process for Procurement of Power from Grid Connected Wind Power Projects for above purpose would be notified separately.