Wind Energy Tender

A wind energy tender is a government competitive procurement through which SECI, state nodal agencies, and DISCOMs invite wind power developers to bid for capacity allocation to develop onshore or offshore wind projects and supply power under a long-term Power Purchase Agreement (PPA) at a competitively discovered tariff.

What is a Wind Energy Tender?

India is the fourth-largest wind power market globally, with 45+ GW installed capacity. Procurement follows the same tariff-based reverse auction model as solar, developers bid the lowest tariff (Rs/kWh) at which they will supply wind power.

Types of wind tenders:

• Onshore ISTS wind: Large projects (500-2,000 MW) with central grid connectivity, procured primarily by SECI
• State wind procurement: Smaller projects for state DISCOMs in wind-rich states (Tamil Nadu, Rajasthan, Gujarat, Andhra Pradesh, Karnataka)
• Hybrid wind-solar: Combined wind-solar tenders with or without storage, procured by SECI and state agencies
• Offshore wind: Emerging segment; SECI has issued tenders for offshore wind development in Indian waters
• Wind repowering: Replacing old turbines (<1 MW) with modern high-capacity turbines; procurement by NIWE (National Institute of Wind Energy)

Procurement process mirrors solar:

1. Request for Selection (RfS) on SECI or state portal
2. Developer qualification (net worth, experience)
3. Reverse auction for tariff discovery
4. PPA signing and project execution

Wind tariffs have risen slightly compared to solar (Rs 2.8-3.4/kWh) due to higher civil and transportation costs and limited access to prime wind sites. Hybrid wind-solar tenders attempt to combine the complementary generation profiles of both.

Why Wind Energy Tenders matter for Indian government suppliers

India's wind energy target is 140 GW by 2030, requiring significant new capacity addition from the current base. Wind turbine supply, tower manufacturing, blade fabrication, civil works, and transmission line construction generate a large domestic supply chain. Government procurement of wind projects drives equipment demand for Indian manufacturers of towers, foundations, switchyard equipment, and civil works.

Example

SECI issues a 1,500 MW ISTS wind tender. After reverse auction, the discovered tariff is Rs 3.02/kWh. Two developers win 800 MW and 700 MW respectively under 25-year PPAs with SECI. The developers in turn issue tenders for wind turbine supply (5 MW turbines), tower supply, civil foundation works, and 33/220 kV substation construction to their respective supply chains.

Frequently Asked Questions

What is the minimum lot size in SECI wind tenders?

SECI typically allocates minimum lots of 50-100 MW per developer in wind tenders. Individual developers can bid for their preferred quantity; allocation follows reverse auction tariff ranking until total capacity is awarded.

How does wind procurement differ from solar procurement for equipment suppliers?

Solar procurement drives demand for solar modules (largely imported), inverters, and basic civil works. Wind procurement drives demand for turbines (primarily domestic manufacturing by Suzlon, Inox Wind, GE India), towers (domestic steel fabricators), blades (domestic/import), and complex civil works. Wind supply chains have higher domestic content by value.

What is offshore wind procurement in India?

SECI has issued offshore wind tenders for projects in Gujarat and Tamil Nadu coastal waters. Offshore wind procurement involves additional complexity: jack-up vessels, submarine cables, offshore foundations, most of which must be imported. The government is developing a domestic offshore wind supply chain under the PLI scheme.

Are state DISCOMs required to buy from SECI wind tenders?

State DISCOMs can purchase power from SECI-procured wind projects through inter-state power sale arrangements, or they can conduct their own state-level wind procurement. Many states prefer SECI-procured power to avoid conducting their own complex reverse auctions.