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Gujarat Wind Energy

Indian States Look To Abandon Wind Feed-in Tariffs After Successful Auction

written by saurabh

Following a sharp correction tariff rates for wind energy projects in the first-ever competitive auction in India in February several states have refused to sign fresh power purchase agreements at higher feed-in tariffs.

According to media reports, states of Gujarat and Andhra Pradesh have declined to sign any fresh power purchase agreements with wind energy project developers. The power distribution companies in these states have expressed reluctance to the respective regulatory bodies in signing PPAs at feed-in tariffs higher than the recently discovered tariffs.

A total capacity of 500 megawatts is now reportedly stranded due to the unwillingness of power distribution companies to enter into PPAs.

The feed-in tariffs in FY2016-17 for Andhra Pradesh was Rs 4.84/kWh (7.5¢/kWh) and for Gujarat was Rs 4.19/kWh (6.5¢/kWh). The tariff discovered in the first-ever auction organised by the Solar Energy Corporation of India (SECI) was Rs 3.46/kWh (5.4¢/kWh). States determine their own feed-in tariffs but the tariff discovered in the auction shall be uniform across the country, irrespective of the wind energy potential of states.

Four companies – Mytrah Energy, Green Infra (owned by Sembcorp), Inox Wind and Ostro Energy were awarded 250 megawatts capacity each while Adani Green Energy secured rights to develop 50 megawatts capacity.

The Indian government is expected to launch similar auctions in the future and state governments may also adopt the route of competitive auctions to increase wind energy capacity instead of relying on feed-in tariff mechanism.

The Gujarat Electricity Regulatory Commission has already directed the power distribution companies to procure wind and solar power through competitive auctions only. The feed-in tariffs determined by the regulator shall act at ceiling price in the auctions.

Image by vectoropenstock.com for Cleantechies

04/20/2017 0 comment

Renewable Energy

1 GW Auction Yields India’s Cheapest Wind Power At 5.2¢/kWh

written by saurabh

Four developers secured rights to develop a cumulative of 1,000 megawatts in first-ever wind energy auction held in India.

According to media reports, the four project developers were allocated 250 megawatts capacity each at a tariff of Rs 3.46/kWh (5.2¢/kWh) in the auction organised by the Solar Energy Corporation of India. Mytrah Energy, Green Infra, Inox Wind and Ostro Energy were the successful bidders.

Mytrah Energy and Green Infra are expected to set up projects in the state of Tamil Nadu while Inox Wind and Ostro Energy would likely set up projects in the state of Gujarat. The companies shall sell electricity generated to Power Trading Corporation of India which will in turn sign power sale agreements with interested utilities across the country.

All companies except Inox Wind are project developers while Inox Wind is a turbine manufacturer. Another project developer Adani Enterprises also placed a bid of Rs 3.46/kWh (5.2¢/kWh) but could not get any capacity allocation.

The tariff discovered in the auction is lower than feed-in tariff offered by any state. The lowest tariff offered is Rs 4.16/kWh (6.2¢/kWh) in Tamil Nadu, although Rs 3.82/kWh (5.7¢/kWh) is also offered in the state of Maharashtra at sites with low wind speeds.

Apart from Inox Wind, another turbine manufacturer participated in the auction. Gamesa India quoted a tariff of Rs 3.68/kWh (5.5¢/kWh) and failed to make the cut. ReNew Power Ventures, one of the leading project developers in India, also failed to grab any capacity as it quote a tariff of Rs 3.47/kWh.

Wind follows solar’s trend

The sharp correction in the price of wind power comes just days after India saw its lowest ever solar power tariff in an auction of 750 megawatts capacity. Solar power tariffs in the auction for Rewa solar power park collapsed from previous low of Rs 4.34/kWh (6.5¢/kWh) to Rs 2.97/kWh (4.5¢/kWh) although the levellised tariff for 25 years period will be Rs 3.30/kWh (4.9¢/kWh).

Indian bids in-line with global trends

The tariff bids seen in India’s first-ever auction are in-line with those prevalent in other markets. According to the International Renewable Energy Agency (IRENA), tariff bids for wind energy projects have converged around 4.0¢/kWh. Auctions held in Mexico, Egypt, Chile and Morocco were around the 4.0¢/kWh mark. Interestingly, tariff bids in developed countries – United Kingdom, Italy, Australia and Canada – were above 6.0¢/kWh.

02/25/2017 0 comment

Renewable Energy

India’s Largest Power Producer, NTPC, Enters Wind Energy Market

written by saurabh

NTPC Limited, the largest power generation company in India, has finally entered the country’s largest renewable energy sector.

NTPC Limited recently announced that it will set up its first wind energy project after months of aggressive and continued push into the solar power market.

According to the company, a 50 MW wind energy project shall be set up in the western state of Gujarat. The project shall be executed by Inox Wind Energy Limited. The project is expected to require a total investment of Rs 323.35 crore.

So far, NTPC has been pushing for solar power projects and has perhaps the largest solar power capacity addition target in India. NTPC will serve as the cornerstone of India’s ultra mega solar power projects programme. India plans to add up to 40 gigawatts of solar power capacity through this programme up setting up solar power parks of capacity up to 4 gigawatts each.

Auctions for several such solar power parks has already begun and a number of developers have commissioned large-scale projects as well.

Being a government owned entity NTPC should have little to no problem in selling the power generated from the wind energy project. Several private companies that own wind energy projects have complained about the poor off-take of power by utilities due to higher tariffs of wind power.

12/19/2016 0 comment

Renewable Energy

India’s Torrent Power Inks Agreement For 197 MW Wind Energy Capacity

written by saurabh

Early signs of persistent growth in the Indian wind energy market are visible as private sector companies in India continue to push for capacity addition.

Gujarat-based Torrent Power has signed an agreement with leading wind turbine manufacturing company to set up over 197 MW capacity across the state. Torrent Power, a private sector power generation company, has a large conventional power generation base and is now looking to expand the renewable energy capacity as well.

The company plans to set up 3 wind projects across the districts of Kutch and Bhavnagar in Gujarat. The projects are expected to be operational next year and shall help the company fulfil its renewable purchase obligation. Torrent Power also owns power distribution utilities in Gujarat which are required to purchase a set minimum percentage of electricity from renewable energy sources.

Torrent Power currently owns 50 MW wind energy capacity, operational in Jamnagar district of Gujarat. It also owns a 51 MW solar power project in the famous Charanka solar power park and is working on an 81 MW solar power project at Surat. The company is also developing 136.80 MW wind energy capacity in Rajkot and Surendranagar districts in Gujarat.

This large order is a healthy sign for the Indian wind energy sector which recently suffered a setback. The Indian government reduced the an important tax incentive that had benefitted several wind energy project developers for years. The fact that companies is still looking to invest in wind energy sector shows that the government’s push for compliance of renewable purchase obligation may be working.

Image Credit: Michael Hoefner | Some rights reserved.
Reprinted with permission

03/30/2016 0 comment