Good monsoon and improved availability of transmission capacity for power evacuation resulted in significant increase in revenue and profits for the wind energy companies in India.
According to media reports, companies like Indowind, Gamesa India and Orient Green Energy have reported sharp boost in revenue due to jump in wind power generation. Tamil Nadu, which hosts the largest wind energy capacity in India experienced massive surge in wind power generation during the monsoon season.
Wind energy generation in Tamil Nadu was so high that the state government had to ask the central government to allocate additional transmission resources to supply the surplus electricity to other states.
Record capacity addition in the last financial year also led to the increased power generation in the first quarter of this financial year. Substantial changes in the incentives regime for wind energy projects are expected from beginning of the next financial year, April 2017; as a result, project developers are looking to make full use of current incentives regime and install as much capacity as possible before April 2017.
Another incentive for the developers to generate more electricity is the increase renewable purchase obligation targets and comparatively stricter compliance. Several state regulators have given directions to utilities to increase procurement of renewable energy and meet their respective RPO targets.