Wind Developers in Andhra Pradesh seek higher tariff

Energetica India has learned that the Wind power developers in Andhra Pradesh are in a huff over lower power tariff. A petition before the Andhra Pradesh Electricity Regulatory Commission (APERC), the body that fixes power tariffs, in the state is already pending and the industry is expecting the regulatory to understand their grievances.

Andhra Pradesh at present allows Rs 3.50 per unit. Among other states, Maharashtra is allowing Rs 5.37 per unit and a generation-based incentive of 50 paise. Rajasthan has recently raised the tariff from Rs 4.22 to Rs 4.46 and a 4 per cent evacuation incentive.

Wind Developers have pointed to the challenges being faced by them including low IRR, and the cubersome process where developers pay Rs 1 lakh and block about 10 km land for three to four years further driving away serious players. The Industry has seen instances of developers taking back the turbines fixed in Andhra Pradesh to a location where the tariff is better, he said.

According to SS Murli, secretary of the Indian Wind Power Association (Andhra Pradesh chapter), the sector is not seeing any significant investments due to the low tariffs. “Wind farms are a ray of hope to bring investments into the Rayalaseema region of Andhra Pradesh, which is known for limestone and allied mining activities. This has potential to bring more than Rs 45,000 crore investments as the wind energy potential is estimated to be about 8,000 mw,” said Murli.