In order to increase the interest of renewable energy companies to explore the untapped avenue of power generation from beyond the country’s landmass, the government announced the target of having 30 GW of offshore wind capacity by 2030. In the short term, the aim is to install 5 GW of such power plants by 2022.
The government, in April, had invited expressions of interest for the development of India’s maiden commercial offshore wind farm, and had proposed a 400 sq km area to set up 1,000 MW of wind capacity near the Pipavav port. The ministry of new and renewable energy said the invitation “has evoked keen response from the industry both global and Indian”.
“Given India’s coastline of 7,600 km, the country has enormous potential for offshore wind energy and it can potentially repeat the success achieved in onshore wind energy,” said Suzlon Group CMD Tulsi Tanti.
Uttar Pradesh New and Renewable Energy Development Agency (UPNEDA) plans to conduct reverse auction for its first large solar project of over 1,000 MW capacity by July end. The tender document for internationally competitive bidding was initially issued in January, but was amended and reissued in April this year. The tender generated strong interest from domestic and foreign investors which led to participation by around 13 bidders with over 37 bids for 1,870 MW capacity.
According to an official working on the project, the technical bids for the project opened last month while the financial bids will open on June 21. “We plan to conduct the reverse auction for the project in July,” the official added.
Sources close to the development told FE there are some 13 domestic and foreign investors who have participated in the bid with interest for around 1,870 MW of project capacity. The list of participants include Azure Power with five bids for 300-MW capacity, Adani and Essel with five bids for 250 MW each, ACME Solar with six bids for 300 MW, ReNew Power with six bids for 280 MW capacity and Hero Renewables with two bids for 100 MW. The other foreign investors include Reynman (Canadian Solar) with two bids for 100 MW, and Fortune Credit Capital with one bid for 70 MW capacity. Some other players were Eden Renewable, Ray Power Infra and MMEPL for up to 100 MW capacity.
The entire cost of transmission including the cost of line construction, wheeling charges and losses will be borne by the developer. The successful developers will enter Power Purchase Agreements (PPAs) with Uttar Pradesh Power Corp(UPPCL) for a period of 25 years. The UPNEDA has also specified that it will penalise project developers for delay in project commissioning. If for any contract year it is found that the developer has not been able to generate minimum energy as per agreement, the developer shall pay a penalty equal to 25% of the project tariff to the procurer, for such shortfall in units, the tender document said.