More wind power projects to go under hammer next fiscal

NEW DELHI: Buoyed by drop in tariff to record low of Rs 3.46 per unit in the first auction of wind power, the government is mulling putting on the block more such projects next fiscal.

“Transparency which is the hallmark of the Modi government, has brought down the tariff of wind power. There will be more and more such projects on the block,” Power, Coal, Mines and New & Renewable Energy Minister Piyush Goyal said.

Asked whether he is expecting wind power tariff to fall further in a more competitive environment, he said: “That is the beauty of tariff based competitive bidding. We cannot predict the tariff. It is the bidders who decide what price should be quoted. I cannot interfere in that.”

Goyal was of the view that the average wind tariff was hovering above Rs 5 per unit earlier due to feeding of rates and lack of transparency.

“We will be looking at more wind power projects auction in the next financial year. We will formalise it. We have not decided yet on the quantum as it all depends upon the states demand because the projects are backed by them,” New & Renewable Energy Secretary Rajeev Kapoor said.

The wind power tariff has been decided so far on the basis of inputs provided by power regulators such as cost of land and equipment and borrowing expenses. However, the feed in tariff used to remain same for the periods as long as 25 years and there was no fuel cost involved as in the case of thermal power.