Suzlon pops the champagne on India's first tariff-based wind project bidding

Bids were less than Rs4 per unit.

India's wind sector finally held hits first tariff-based bidding and got bids of less than Rs4 per unit. Tulsi Tanti, CMD of Suzlon Energy, says that in light of the recent bidding, renewables have received a shot in the arm and will witness a growth in volumes in the country. Currently wind projects are limited to 7-8 wind rich states in the country where capacity addition continues, he adds.

Here's more from Tanti:

Tariff based bidding is a game changer in the industry, coupled with indirect support from the Government like central transmission utility (CTU) network connectivity will open new markets and lead to expansion of wind energy across the country.

The sub Rs. 4/- per unit tariffs are competitive due to multiple factors viz new breed of efficient turbines, softening of interest rate regime, lowering of return expectations by investors and the opportunity to enter new markets.

This will help the industry to achieve the Government’s target of 60 GW in wind as part of the 175 GW target of renewable energy by 2022. We expect the current bid results to accelerate wind capacity addition in the country and would offer significantly higher market potential for market leaders like Suzlon.