The Tamil Nadu Electricity Regulatory Commission (TNERC) has proposed a sharp increase in the wind power tariff to attract more private investors and tap the state's wind power potential. Though Tamil Nadu with an installed capacity of 1400MW accounts for 43% of the total wind power generated in the country, it has failed to draw more private players because of the low tariff. Tamil Nadu offers a low price for wind energy from private investors compared to states like West Bengal.
Wind turbine manufacturers, wind energy developers and wing energy generators have periodically made representations to the TNERC urging it to refix the tariff in view of input costs such as capital costs, interest rates and maintenance costs in increasing in the last two years.
Despite being a significant wind power producer, Tamil Nadu has been showing a declining trend when it comes to augmenting its wind energy sources. In fact, there is fear that investment have been shifting from Tamil Nadu to other states like Gujarat, Maharashtra and Karnataka which offer a more competitive price.
Tamil Nadu's wind power mills are situated in three major passes in the western ghats - the Aralvaimozhi, Sencotta and Palghat passes. "Various factos like constraints on evacuation of wind energy and frequent load shedding affected investments. The industry has been quite unahppy with the tariff, which was fixed during May 2006 at Rs 2.90 paise. As many businessmen came forward seeking tariff revision, we decided to put forth a proposal" said a TNERC official, who did not wish to be named.
The revision of tariff is expected to bring in more players and investments to the tune of Rs 2,000 crore. "With the demand-supply gap standing at 2000 MW, we need more power plants. It is unfair to put the entire burden on the government. Though Tamil Nadu has an edge over States like Gujarat and Karnataka which contribute only 11% to the national wind power generation, the tariff remained a stumbling block," said the official.
Meanwhile, industrialists foresee a better investment scenario if the tariff is revised. Raj Kumar Khemka, vice chairman of NPEC said that the decision would encourage more investments. He said more independent power projects would come up even in areas with low wind velocity.
Said Ramani, the task force member of the Indian Wind Turbine Manufacturers Association: "The size of our business is about 600 MW throughout the state. Though there will be a slight fall in investments due to the economic meltdown, we are sure of good growth during the financial year 2009-2010."
Source:http://timesofindia.indiatimes.com/Cities/State_hikes_wind_power_rate_to_attract_more_investors/rssarticleshow/3848227.cms Date:17-12-08
Wind turbine manufacturers, wind energy developers and wing energy generators have periodically made representations to the TNERC urging it to refix the tariff in view of input costs such as capital costs, interest rates and maintenance costs in increasing in the last two years.
Despite being a significant wind power producer, Tamil Nadu has been showing a declining trend when it comes to augmenting its wind energy sources. In fact, there is fear that investment have been shifting from Tamil Nadu to other states like Gujarat, Maharashtra and Karnataka which offer a more competitive price.
Tamil Nadu's wind power mills are situated in three major passes in the western ghats - the Aralvaimozhi, Sencotta and Palghat passes. "Various factos like constraints on evacuation of wind energy and frequent load shedding affected investments. The industry has been quite unahppy with the tariff, which was fixed during May 2006 at Rs 2.90 paise. As many businessmen came forward seeking tariff revision, we decided to put forth a proposal" said a TNERC official, who did not wish to be named.
The revision of tariff is expected to bring in more players and investments to the tune of Rs 2,000 crore. "With the demand-supply gap standing at 2000 MW, we need more power plants. It is unfair to put the entire burden on the government. Though Tamil Nadu has an edge over States like Gujarat and Karnataka which contribute only 11% to the national wind power generation, the tariff remained a stumbling block," said the official.
Meanwhile, industrialists foresee a better investment scenario if the tariff is revised. Raj Kumar Khemka, vice chairman of NPEC said that the decision would encourage more investments. He said more independent power projects would come up even in areas with low wind velocity.
Said Ramani, the task force member of the Indian Wind Turbine Manufacturers Association: "The size of our business is about 600 MW throughout the state. Though there will be a slight fall in investments due to the economic meltdown, we are sure of good growth during the financial year 2009-2010."
Source:http://timesofindia.indiatimes.com/Cities/State_hikes_wind_power_rate_to_attract_more_investors/rssarticleshow/3848227.cms Date:17-12-08
No comments:
Post a Comment