Wind turbine makers are staring at a slowdown even as the government looks to boost renewable energy.
Competitive bidding for solar and wind power has brought down tariffs and power producers are under pressure from sates to renegotiate pricing. The tough bargain is likely to dissuade private companies from investing in renewable projects, credit rating agency ICRA had warned in August. That’s already started hurting demand for equipment.
“Most wind turbine manufacturers have halted production till they receive firm orders, thus toppling plans made by the industry,” said Shantanu Jaiswal, an analyst at Bloomberg New Energy Finance.
The trouble started when the government shifted from feed-in tariff, which guaranteed price protection, to competitive bidding. India’s first wind auction in February 2017 fetched a tariff of Rs 3.46 per kilowatt hour. That’s lower than the lowest wind feed-in tariff, Jaiswal said. Read More…
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