Volumes, Project Execution Time ‘lowering’ Wind Power Tariff

Volumes, Project Execution Time ‘lowering’ Wind Power Tariff

In several capacity auctions in recent times, wind energy companies have demonstrated their ability to sell electricity at record low prices – ₹2.43 a kWhr has been the least – and the days of these companies getting plum prices fixed by the State electricity regulators are gone. Low tariffs are here to stay.

Turbine costs

These companies, called independent power producers (IPPs), could not have quoted such low prices unless backed by an assurance by wind turbine manufacturers that they would sell their machines at prices that would enable the IPPs to sell power at low rates and still be in business.

Does this mean that the wind turbine manufacturers, who are the real movers behind wind electricity prices, have been profiteering all these years? If they could drop prices now under pressure of competition, why couldn’t they have done it earlier? These are the questions being asked today, and there have been accusations that turbine manufacturers had been making unconscionable profits at the cost of end customers, typically the electricity distribution companies. Read More

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