Gujarat Wind Developers Blame OEMs, Others For Higher Wind Tariff

By Manish Kumar/ Updated On Fri, Dec 29th, 2023

Highlights :

The details were recently broadcasted by the wind developers during the hearing of a case in the Gujarat Electricity Regulatory Commission (GERC).

Gujarat Wind Developers Blame OEMs, Others For Higher Wind Tariff

CIP Commences Construction On 300 MW Wind Project With Envision

Wind developers in Gujarat now have justified higher wind project tariffs, attributing this to the monopolistic attitude of Original Equipment Manufacturers (OEMs) and other price hikes in the market. The information was recently featured during the hearing of a case in the Gujarat Electricity Regulatory Commission (GERC).

The case was related to the adoption of tariffs for 300 MW of wind energy projects in the state. Gujarat Urja Vikas Nigam Limited (GUVNL) floated the tender for the same in 2022 with an option for Greenshoe. Juniper Green, WYN Renewables, ACME Pokhran Solar and Solarcraft Power India 3 were declared as the successful bidders in the case.

Juniper had quoted a price of Rs 2.96 per unit for the proposed wind project, whereas after negotiations, the firm reduced the tariff to Rs 2.95 per unit. WYN quoted the tariff of Rs 3/unit. On the other hand, ACME and Solarcraft quoted a tariff of Rs 3.01 each.

During the hearing, it was stated that GUVNL had recently signed PPAs aggregating to 560 MW capacity at the tariff of Rs 2.90 per unit under its Wind Tender (Phase III) in December 2022. On the other, the tariff discovered at the end of the reverse auction under SECI’s 1200 MW Wind Tender (Tranche-XIII) was in the range of Rs 2.90 to Rs 2.95 per unit.

“It is stated that the Petitioner (GUVNL) negotiated with bidders and stated that there was practically no real-time competition during-RA. It was stated that the tariff of Rs. 2.96–3.01 per Unit discovered in the instant tender during January 2023 is not aligned with the recently concluded tender for which PPAs were executed in December 2022 at the tariff of Rs. 2.90 per Unit,” the order said.

Raking up on the issue of surged tariffs, the GERC order noted, “It is stated that all the bidders have expressed their concern over monopolistic attitude of the OEMs, increase in steel prices form December 2022 onwards, levy of export duty on steel, the additional impact of GST and exposure to higher corporate tax rate of 22% compared to earlier rate of 15% for new manufacturing/generation units.”