Wind energy in India is now the cheapest among all the sources of renewable energy (Read). Solar energy was cheapest at INR 2.44 hitherto. On Thursday in a reverse auction of Wind energy the lowest tariff discovered was INR 2.43. Gujarat Urja Vikas Nigam Limited (GUVNL) had called this auction for a capacity of 500 MW.
Trajectory of Solar & Wind energy tariffs in different auctions
In 2015, the GOI revised the renewable energy target to 175 GW by 2022. Of this 160 GW will be from solar and wind energy: 100 GW from solar and 60 GW from the wind.
With the concern for cost and scale, the GOI started the reverse tenders for solar projects in 2015. Surprisingly the solar energy tariffs began to breach records. GOI focussed on solar as it was the most expensive source of renewable energy back then. At that time the cost of solar energy was between INR 7 or 8.
In July 2015 when solar tariff touched INR 5.05 it was the first record lowest tariff at that time. In the subsequent tenders, the solar tariffs continued to fall. To achieve 100 GW of solar it was pertinent to call for more solar energy tenders. That is why since 2015 there have been 14 solar energy tenders and just 4 wind energy tenders. Interestingly, all the 4 wind auctions have been conducted in the year 2017 itself. Perhaps what happened to solar more than two years back is now happening to the wind.
SolarDae’s take on the wind energy auction
The results have surprised the wind industry, especially because at a time when overall renewable energy tenders have slowed down, the GUVNL auction breaches the all-time low renewable energy tariff.
According to Team SolarDae, the wind energy developers must be wary of the competition. Taking a cue from solar sector the developers have decided to go aggressive. Further, there was a time when wind energy was cheaper than solar. Therefore, there should be no room for panicky or hysteria around low tariffs.