As the first tariff-based reverse auction for wind power got underway on Thursday, the Indian Wind Turbine Manufacturers Association (IWTMA) has cautioned industry stakeholders, including developers, to be “prudent” in bidding and learn from aggressive solar auction that saw tariffs falling to historic low levels earlier this month. However, certain industry insiders said the move is akin to a call for collusive bidding.
In a letter to all stakeholders, DV Giri, secretary-general of IWTMA, argued that if tariff fall lower than feed-in tariffs (FIT) determined by state electricity regulators, it could bring down the volume of wind capacity addition from the projected level (of around 4,000 MW) in FY18. He further said that low tariffs often come in the way of completion of projects. Lower wind energy tariffs discovered in the auction might also lower the existing tariffs in states such as Gujarat, Karnataka and Tamil Nadu, IWTMA said. The prevailing tariffs in these states are R4.19, R4.50 and R4.16 per unit, respectively. Read More…
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