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India wind power project bidding guidelines issued Tax rate dropped
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India wind power project bidding guidelines issued  Tax rate dropped

India has approved a new set of guidelines for bidding for wind power projects under the central government policy. These guidelines are expected to lower tariffs.

The Ministry of new and renewable sources of energy has recently formally issued guidelines for the bidding of wind power projects in India. This guideline further supports project developers through PPA mediation and payment security mechanisms.


The guidelines set a minimum installed capacity of 5 MW for a single project and a minimum bid limit of 25 MW for in-state projects ( electricity generated by the project is consumed in the state ); For interstate projects, the minimum project size and the minimum tender limit are 50 MW.

Solarenergy corporation of India, an Indian solar company, has won a bid for 1,050 megawatts at two bidding rounds. In two rounds of bidding, the tax rate fell from 5.7 cents / kwh to 3.8 cents / kwh. This model is more obvious in the solar industry, especially by India 's largest power generation and India 's national electricity or on behalf of India 's national electricity bidding.
India 's state power is an intermediary between solar power producers and distribution companies, helping to mitigate the risk of solar power producers from being paid by distribution companies.

The same concept applies to wind power. Here, the intermediary is PTC India, another government entity, which will sign a power purchase agreement with wind power generators and then a back-to-back power purchase agreement with distribution companies.

In addition, wind power developers will receive a payment security fund that will be used passively in the event of any payment default by the distribution company. This is the solution proposed by India 's new and renewable energy Ministry after receiving complaints from project developers about long-term delays in payments.

India 's goal is to install 60 gigawatts of wind turbine capacity by March 2022. The central government will bid for 20 gigawatts of wind power installation capacity between April 2018 and March 2020. At the same time, the state governments will also organize their own bidding matters. So far, India has installed 32 gigawatts of wind power in the camp.

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