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from TradeBriefs FMCG Daily Newsletter

Sree Vijaykumar

From the Editor's Desk
The latest guidelines from the Power Ministry on bidding for wind power projects are seen as a positive development for the industry, undergoing tremendous strain over the last six to seven months. The capacity addition stagnated over the period after the central government introduced the auction method for setting up of wind projects leading to a fall in tariffs as it touched an all-time-low in the two auctions (conducted by Ministry of New and Renewable Energy). The tariff touched a low of Rs 3.21 and Rs 2.64 per unit in the two auctions that the sector saw till now. It forced the wind power associations to file a petition in the supreme court highlighting that the small scale manufacturers of components for wind turbines were squeezed by the relentless fall of wind energy tariffs in successive auctions. Till now the tariffs were decided by State Electricity Regulatory Authorities under the feed-in-tariff regime and the tariffs ranged between Rs 3.5 to Rs 6 per mWh across different states. Excerpts...

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