Last week’s successful wind power auction could be a mixed blessing for wind solutions providers Suzlon Energy Ltd and Inox Wind Ltd.
The good news is the auction reinforces wind energy’s business model. Low tariffs would make wind energy more palatable for financially stressed power distribution companies (discoms) and pave the way for more capacity additions. According to Bhargav Buddhadev, an analyst at Ambit Capital Pvt. Ltd, auction-based project awards can trigger renewed interest from foreign companies in India’s wind energy market.
But this auction can set uncomfortable precedents for equipment makers. States till now have been awarding wind energy contracts and signing electricity purchase agreements on a preferential basis. The current feed-in tariffs vary between Rs4-6 per unit. Read More…
Credit By : Livemint.com
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