Entities like NTPC, which conduct the auctions, are subsequently required to get sanctions from the states where the projects would be set up. In previous years, this was widely regarded as a formality with sanctions being automatically given. This time, however, NTPC was not able to secure tariff approval from state power regulatory commissions.
The 1,200 MW tender was issued by SECI, the central government's nodal agency responsible for conducting auctions, for the second time this week at a ceiling tariff of Rs 2.93 per unit.
India is said to be scaling down contracts with Hamburg-based turbine manufacturer Senvion after its solvency filed in German court of law. Alfanar Energy, which had signed a contract with Senvion for a 300 MW project in India, terminated the order and awarded it to Siemens Gamesa Renewable Energy.
In Thursday's auction of the SECI, the nodal agency of the renewable energy ministry, Renew, Avaada and UPC Renewables won 300 MW each at a tariff of Rs 2.71 per unit.
Sumant Sinha told he has doubts about the situation in Andhra Pradesh, where it is building 700 MW of projects, after chief minister Jaganmohan Reddy tried to review wind and solar energy contracts.
NTPC’s last wind tender, which was conducted in August last year, also has problems. It was a 1,200MW tender where winning tariffs were in the range of Rs 2.77-2.83 per unit. The next bid submission date has not been announced yet, sources said.
In a breather for successful bidders, Andhra Pradesh power regulator has approved solar power tariffs arrived at in the auction. State discoms had delayed adopting the tariffs until approved meanwhile others have started construction.
In the latest wind auction conducted by the Solar Energy Corporation of India, the nodal agency of the Ministry of New and Renewable Energy, only two developers took part.
The state regulator’s approval for adoption of tariff is required within two months after signing the power purchase agreement (PPA) or the power sale agreement (PSA), whichever is first.
The state's new chief minister YS Jaganmohan Reddy has been attempting to renegotiate wind and solar tariffs because he believes they were signed at rates higher than in other states.
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