Wind energy industry in India optimistic, to cross 4000 MW this year

IWTMA

Wind installations in India are expected to cross 4000 MW this financial year ending March 31, says Indian Wind Turbine Manufacturers’ Association (IWTMA).

The states of Andhra Pradesh, Gujarat, Rajasthan and Karnataka were the major contributors in the total wind installations in 2016. Together they contributed 3718.91 MW.

Noting that India had made significant commitment under the Paris Declaration and the CoP 21 to fight against the climate change, the IWTMA chairman, Sarvesh Kumar, outlined that wind industry witnessed many path-breaking policies in 2016.

The draft Wind-Solar-Hybrid policy, guidelines for development of Onshore wind projects and for prototype wind turbines, proposal for evaluation of small wind energy and hybrid projects, competitive bidding of 1000 MW of wind power and setting up of 1000 MW ISTS connected wind power projects, were among the few initiatives.

Kumar also commended the Centre for waiving the Central Transmission Utility (CTU) charges in the competitive bidding up to 2019 besides announcing reduction in the duty structure.

Considering that 90 percent of the investments came from the private sector in the wind sector, Kumar felt that the payment security “Must Run Status” and maintenance of RPO by wind States were vital.

Elaborating further that the National RPO and RPO by all the 29 States would bring about the much required traction for wind, Kumar wanted closer working of the industry with the Power Grid Corporation India Limited (PGCIL).

While admitting that competitive bidding will become the order of the day in the near future, Kumar said the open access and freedom to sell under the captive and group captive policy must be made available both for intra and inter-State transactions.

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Outlining the key challenges ahead are the reduction in Accelerated Depreciation (AD) from 80 per cent to 40 per cent and possible withdrawal of Generation Based Incentive (GBI) would see some temporary slowdown in the wind industry, the IWTMA Vice-Chairman and President, SBD, Suzlon Energy Group, Chintan Shah, said the market was poised to settle around 6-7 GW per year from 2018 and beyond.

Exports of around 2 GW per year from 2018 and beyond and wind-solar-hybrid and Repowering of 500 to 1000 MW each will help drive the industry in the next few years.

Shah outlined the outlook for the future of the wind industry including certain States not obligating the Purchase Power Agreement (PPA), delayed payment by certain DISCOMs, and 1000 MW bidding to be increased to about 5000 MW in the next two years.

Shah noted that reduction of AD from 80 per cent to 40 per cent and non-continuation of GBI will also hamper the development of wind power. He also appealed to the Centre to favorably consider the recommendation made by the Union Ministry of Power for according zero rate tax for the Renewable Energy sector under the proposed GST regime.

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