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The Union ministry of renewable energy has issued guidelines for setting up inter-state transmission system to evacuate wind power to the extent of 1000MW from windy states like Tamil Nadu, Andhra Pradesh and Rajasthan.

As per the guidelines, wind power projects will be selected through an open and transparent competitive bidding and power will be sold to states, which need to purchase wind energy ranging from 50MW to 250MW to fulfil their renewable energy purchase obligations. Tamil Nadu had recently asked the Union ministry for an inter-state green corridor to evacuate excess wind energy that the state generates between May and September.

"The government has not kept any reserve price for the wind power tariff and left it to the market to decide the rate. At present, wind power price ranges between Rs 3.9 per unit (lowest in Tamil Nadu) and Rs 5.5 per unit in other states," an MNRE official told TOI.

As per the guidelines, the competitive bidding will be followed by e-reverse auction and the capacity may go beyond 1000MW if there is demand from buying entities. The implementing agency, SECI, has already floated documents for selection of bidders under the scheme, said the official.

Power distribution companies of non-windy states and Union territories and also bulk consumers of any state/UTs who intend buying 10MW or more can buy wind power under the scheme. PTC India Ltd, a trading company, will sign power purchase agreements (PPA) with wind projects. The term of PPA and PSA will be for 25 years.

"We had requested for an inter-state green corridor to transmit wind power and this was raised with the Union power minister Piyush Goyal during the recent meeting on Uday scheme. This is the first step towards that direction and during wind season, wind power companies in Tamil Nadu can sell power to needy states. This year too we sold power to Uttarakhand and Goa as they had to fulfil power purchase obligations," said a senior TNEB official.

Source: TOI