In the latest 1,000 MW wind auction conducted by the Solar Energy Corporation of India (SECI), the lowest bids were Rs 2.64 (USD 0.0404) per kWh by ReNew for 250 MW and Orange for 200 MW. To round out the winner, there were three other winners at Rs 2.65. Compare this to the lowest auction price of Rs 3.42 (USD 0.0523) in August 2017 during wind auction by Tamil Nadu Generation and Distribution Company.
At USD 0.0404, the price of wind in India is approaching prices in the Texas region of US, where PPAs are below USD 0.02 (add to this USD 0.023 in production tax credits for 10 years). Note, the wind speeds in India are lower than Texas, while the total installed cost in India is lower.
This article also points out that the lowest solar auction in India has yielded an astonishing Rs 2.44 per kWh (USD 0.03733).
With this race to the bottom in RE prices, lot of players in India are questioning if the utility-scale RE industry will get decimated. Similar questions were being raised about the US wind industry 3 to 4 years ago when PPA prices in Texas dipped below US 0.02, and so far the industry has survived.