Lok Sabha Question No. 374 (UNSTARRED), answered on 2022-12-08
Subject: Wind Power Projects
Ministry: NEW AND RENEWABLE ENERGY
Asked by: Vijayakumar (alias) Vijay Vasanth

## GOVERNMENT OF INDIA MINISTRY OF NEW AND RENEWABLE ENERGY

## LOK SABHA UNSTARRED QUESTION NO. 374

ANSWERED ON 08.12.2022

## WIND POWER PROJECTS

## 374. SHRI VIJAYAKUMAR ALIAS VIJAY VASANTH

Will the Minister of NEW AND RENEWABLE ENERGY be pleased to state:

- (a) whether the country has committed to install 60,000 MW of wind power projects by 2022, but only two thirds of the target was achieved;
- (b) if so, the details thereof and the reasons therefor;
- (c) whether the Government proposes to do away with the practice of reverse auctions;
- (d) if so, the details thereof;
- (e) whether e-reverse auctions are leading to tariffs being artificially lowered leading to unhealthy competitions; and
- (f) if so, the details thereof?

## ANSWER THE MINISTER OF NEW & RENEWABLE ENERGY AND POWER

## (SHRI R.K. SINGH)

(a) & (b) In 2015, Government had set a target of installing 175,000 MW of RE capacity by the year 2022, out of this 60,000 MW was targeted to come from wind power projects.  As on 31st October 2022, wind power projects of 41,843 MW capacity are commissioned and 11,734 MW capacity are at various stages of implementation in the country. In addition, bids of 1700 MW capacity of wind power projects are issued. The state wise details of commissioned wind power projects are at Annexure I .

The reasons for shortfall in achieving the target, inter alia , include change in tariff regime (i.e. Feed-in-Tariff  (FiT)  to  bidding  route),  COVID-19  pandemic,  supply  chain  disruption  on account of COVID-19, etc.

(c) & (d) As per clause 8.1 of 'Guidelines for Tariff Based Competitive Bidding Process for Procurement of Power from Grid Connected Wind Power Projects' the Procurer shall call for the  bids  adopting  a  single  stage  two  envelop  bidding  process  to  be  conducted  through Electronic mode (e-bidding). The procurer may also opt for e-reverse auction for final selection of bidders, in such a case, this will be specifically mentioned in the notice inviting bids and bid document.

Accordingly, e-reverse auction is not a mandatory provision for the procurer.

Further, the Ministry constituted a committee to examine the present practice of bids conducted for wind power projects. The committee, inter alia , recommended to adopt state-specific single stage two envelope closed bidding process.

(e) & (f) The lowest tariff discovered for wind power projects conducted through transparent competitive  bidding  process  including  e-reverse  auction  is  Rs.  2.43  per  unit.  The  tariff discovered in all the subsequent wind bids are higher and reached upto Rs. 3 per unit. The discovered tariff in the latest bid is Rs. 2.89 per unit. The details of discovered tariff in wind bids are given in Annexure II . Further, the aforesaid committee observed that no clear trend in tariff discovery is observed during the e-reverse auctions regime.

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Annexure I  referred  to  in  reply  to  part  (a)  &  (b)  of  the  Lok  Sabha  Unstarred Question No. 374 for 08.12.2022

## Wind Power installed capacity (as on 31 th  October 2022)

| STATE          |   Cumulative wind power capacity as on 30.10.2022 (MW) |
|----------------|--------------------------------------------------------|
| Andhra Pradesh |                                                4096.65 |
| Gujarat        |                                                9809.32 |
| Karnataka      |                                                5268.15 |
| Kerala         |                                                  62.5  |
| Madhya Pradesh |                                                2844.29 |
| Maharashtra    |                                                5012.83 |
| Rajasthan      |                                                4681.82 |
| Tamil Nadu     |                                                9936.01 |
| Telangana      |                                                 128.1  |
| Others         |                                                   4.3  |
| Total          |                                               41844    |

Annexure II  referred  to  in  reply  to  part  (e)  &  (f)  of  the  Lok  Sabha  Unstarred Question No. 374 for 08.12.2022

|   Sl. No. | Bidding               |   Minimum Discovered Tariff (Rs. per unit) |
|-----------|-----------------------|--------------------------------------------|
|         1 | SECI-I                |                                       3.46 |
|         2 | SECI-II               |                                       2.64 |
|         3 | SECI-III              |                                       2.44 |
|         4 | SECI-IV               |                                       2.51 |
|         5 | TANGEDCO, Tamil Nadu  |                                       3.42 |
|         6 | GUVNL, Gujarat Ph. I  |                                       2.43 |
|         7 | MSEDCL, Maharashtra   |                                       2.85 |
|         8 | SECI-V                |                                       2.76 |
|         9 | SECI - VI             |                                       2.82 |
|        10 | SECI - VII            |                                       2.79 |
|        11 | GUVNL, Gujarat Ph. II |                                       2.8  |
|        12 | SECI - VIII           |                                       2.83 |
|        13 | SECI IX               |                                       2.99 |
|        14 | SECI X                |                                       2.77 |
|        15 | SECI XI               |                                       2.69 |
|        16 | SECI XII              |                                       2.89 |