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The price of wind-based electricity touched a new low of Rs 3.42 per unit at the auctions held on Tuesday by Tamil Nadu’s state-owned electricity distribution company, Tangedco. The latest tariff is lower than the Rs 3.46 per unit discovered in the maiden wind auction held by the central government in February, and far below the range of Rs 3.71-6.04 under the feed-in-tariffs (FiT) system that allows cost-based compensation to wind power units. Analysts said the continuous fall in wind power prices will hit the generators’ internal rate of return (IRR), especially since it follows the withdrawal of generation-based incentives by the government. However, the lower tariffs have reduced the market risk, as discoms are unlikely to renege on the purchase obligations.