India releases draft guidelines for wind tenders

India’s Ministry of New & Renewable Energy (MNRE) on Friday published draft guidelines for wind power auctions and said it is seeking comments and suggestions on the proposed rules by April 21.

Currently, distribution utilities are buying wind power at a feed-in tariff (FiT) set by the respective State Electricity Regulatory Commission (SERC). The guidelines are designed to provide a framework for a competitive bidding process to reduce costs and are intended for grid-connected projects of above 5 MW. The draft rules envision parties bidding for at least 25 MW of projects, with at least 5 MW located at one site and power purchase agreements (PPAs) of at least 25 years.

India has a target of 175 GW of renewable power capacity by 2022, including 100 GW of solar and 60 GW of wind. According to the document, it now has almost 32 GW of wind capacity. The ministry said that FiTs coupled with different incentives by the central and state governments have seen the sector grow a lot since 2002 and added that the introduction of competition is needed to achieve cost reduction.

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