The Solar Energy Corporation of India’s (SECI) 1200 MW wind auction on Monday got tepid response from developers. SECI has received techno-commercial bids of only 600 MW.
According to the developers SECI’s practice of setting a ‘ceiling tariff’ was the cause of tepid response. This time SECI has set ceiling tariff at Rs 2.83 per unit and projects can be developed anywhere across the country.
SECI has seen over subscription in most of its auctions, in February this year SECI’s 1200 MW wind auction drew bids of nearly twice the amount. However, this time the case is different.
A developer speaking to ET on condition of anonymity said “The only state where such a low tariff is feasible is Gujarat,” he added “perhaps only developers who already have land in Gujarat have submitted bids.”
Other developers have blamed availability of land and transmission facilities for the low bidding. Gujarat has always been blamed of being partial and unwilling to provide land for projects bid out by central agencies, doing so only for state sanctioned projects. However the state has recently released a land policy for renewable energy projects, but there is still confusion on how the allotments will actually be made.
A senior SECI official speaking to the publication that corporation has not taken any decision yet whether they will re-issue this tender or not.