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Wind power companies appeal against low tariff in Tamil Nadu
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Tamil Nadu Electricity Regulatory Commission (TNERC) has approved an upper limit on the tariff for wind power plants in the state. TANGEDCO, the state DISCOM will procure the wind energy. The upper limit will be INR 2.65 per unit and the tender size is 1500 MW. This has aggrieved the wind companies who feel that the tariff is too less to cover their cost. They have appealed against the order before Appellate Tribunal for Electricity (APTEL).

In November TANGEDCO had filed a petition before TNERC for approval of solar and wind power projects. The DISCOM is supposed to procure power from these projects through the competitive bidding route. TNERC while approving the tariffs had also stated that an appeal against this order could be made before APTEL.

In April TNERC had issued its order on the generic tariff for wind power projects. It had approved a tariff of INR 2.86 & INR 2.80 per unit with and without Accelerated Depreciation (A.D) benefits respectively.

In 2017 reverse auctions for wind power projects had brought the tariffs at sub-3 levels. In fact, at INR 2.43 wind tariff records being cheapest among the renewable energy technologies in India.

Wind power companies appeal against low tariff in Tamil Nadu
Source: SolarDae Research

The lowest tariff in the solar energy category is INR 2.44. But in comparison to solar, the number of tenders through reverse bidding for wind have been far too less. Therefore it cannot be said with an assertion that the tariffs of wind power projects are around INR 2.65 or not.

Indian Wind Turbine Manufacturers Association (IWTMA) has petitioned the APTEL that TNERC has not considered various costs incurred in the investment of wind power plants. The tariff INR 2.65 is too low to cover the cost.

Arbitrarily ceiling tariffs for solar or wind power plants is a gross injustice to project developers

Team SolarDae believes that the forces operating in the open market should be independent of regulatory or political influences. Unnecessary interventions erode investors’ interests in setting up projects.  While it is clear that the government wants solar tariffs below INR 3 levels, APTEL must consider the same for wind power projects too.

Featured Image Credit: Pixabay

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Post Author: Ankur Kumar Jha

Founder SolarDae || MBA Power Management || B.E (Mechanical)

Ankur analyses mainstream media coverage of renewable energy in general and solar in particular; he tracks the ongoing development of regulations and policies and incorporates them in his opinion. He can be reached at +91-8860726731 for any assistance in rooftop solar and utility-scale projects.

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