Indian Wind Turbine Manufacturers Association express the need for more policies in Rajasthan.

The apex body in wind sector, Indian Wind Turbine Manufacturers Association (IWTMA) addressed the media to discuss the wind power development in Rajasthan. In the year 2015-16, Rajasthan installed 688 MW and the current total installation is 4237 MW till January 2017.  The wind sector expressed confidence of growth of wind energy in the State.

There is a paradigm shift to Competitive Bidding instead of Feed In Tariff (FIT) on the recent 1 GW bid organized by SECI.  The industry responded well with an interest of 2644 MW by four bidders @ Rs.3.46.  The bid of Rs.3.46 need not be taken as an aggressive bid.  Most of the bids are from Tamil Nadu, where the PLF is very high and is also based on interstate transaction with Power Grid Corporation of India Limited (PGCIL) network.  IWTMA has requested MNRE for future bids of 5 to 6 GW so that the canvas is large and the market will grow under this process.

Mr. Giri said "While Competitive Bidding is a good vehicle, Open Access and freedom to sell under captive and group captive is a MUST both for intra and interstate transaction.  I am very confident that exports can be pushed from the current $ 500 Million to $ 2-3 Billion per year provided we get advantage of Transport Logistics and Green Line of Credit to handle exports.  In other words, export if planned well can result in 2 GW export per year from 2018. 

Mr. Giri also mentioned that an investment friendly policy on Wind Solar Hybrid systems and Repowering will result in accelerated growth".

The apex body IWTMA also outlined the key challenges ahead in the reduction in Accelerated Depreciation (AD) from 80% to 40% and possible withdrawal of Generation Based Incentive (GBI) in April 2017 which could see some temporary slowdown in the wind industry, but not a worrying factor.

Pointing out that the States of Andhra Pradesh, Gujarat, Rajasthan and Karnataka were the major contributors in the total wind installations in 2016 with their lion share of 3718.91 MW, the IWTMA is happy to note that in the financial year ending March 31st, the wind installations are expected to cross 4000 MW and total installation beyond 30,000 MW.

The Association also highlighted some of the key challenges in Rajasthan.  One of the major expectation is for the Government of Rajasthan to follow and implement the RPO trajectory as recommended by Ministry of Power.  The state may also encourage new installation of turbines and encourage interstate transaction from Rajasthan to other states.

GST will be implemented in July as planned now will pose challenge to wind sector.  The wind sector has requested for 'zero' rating or 'concessional rating' for wind sector without which it will impact capital cost.  MNRE has also given similar recommendation and it is interesting to note that Ministry of Power has recommended to the GST Council for 'Zero' rating for Renewable Energy sector.

IWTMA has partnered with the Global Wind Energy Council (GWEC) to organize a mega three-day exhibition and two-day international conference – “Windergy India 2017” from April 25 to April 27 at Hotel Ashok in New Delhi, where leaders from across the globe would deliberate and discuss the way forward and come out with solutions with a concern for environment and combat global warming and climate change.

Windergy India 2017 is a mega event by the industry and for the industry and the main theme of the event is “Wind Destination: India” and “Wind Power Forever”.

Policies & Regulations | News published on 17/03/2017 by Moulin

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