Wind power tariff in State to drop to 2.91 per unit

This will help meet the utility’s non-solar renewable purchase obligation (RPO) requirement from the year 2021-22.

After its wind power reverse auction bid with a maximum ceiling of Rs 2.65 per unit failed to evoke any response in 2018, Tangedco handed over the task of procuring wind and solar energy to the SECI to attract better prices. With the Centre fixing an ambitious target of 1.75 lakh MW renewable power by 2022, including 60,000 MW of wind power, TN has to install 3,500 MW wind power capacity in the next two years.

Commenting on the development, a wind power producer said that many a times, the companies bidding for lower tariff through reverse auctioning have found it difficult to execute the project. “Wind tariff is already at rock bottom. It will become untenable for the investors to make new investment,” he said. Tangedco had failed to pay wind power producers for the past two years. The outstandingamount runs up to over Rs 2,000 crore. In this backdrop, this move is likely to deter further investment in the sector.