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Wind turbine manufacturers plan to request Tamil Nadu to increase tariff

The  installation  in India being range bound  between 1470-1750MW  a year over the last five years and the installed capacity for 2009-10 was around 1565MW. Panchabuta had projected an installation of about 2200MW for the year 2010-11 based on our research. The actual installed capacity for wind for the year is around 2300MW and Tamil Nadu is once again in the forefront in terms of installed capacity with about 990MW.

According to reports, the Indian Wind Turbine Manufacturers Association (IWTMA) plans to request the Tamil Nadu Electricity Regulatory Commission (TNERC) to increase the tariff.

From May to October every year, wind energy helps the Tamil Nadu Electricity Board (TNEB) tide over the crisis but wind power generators are paid only Rs 3.39 a unit. “We plan to ask the TNERC to increase the tariff to Rs 3.89,” said IWTMA chairman D V Giri.

An increase in tariff is expected to help more manufacturers to set up wind generation farms in the state that currently has an installed capacity of over 5,000 MW.

There is a great need to improve the sub-stations and transmission network that carries the generated wind power. “The TNEB has written to the Ministry of New and Renewable Energy (MNRE) seeking more funds,” said the source.

Developers that Panchabuta spoke to have said that they would like a better payment schedule for their existing wind farms in Tamil Nadu. Most developers that we spoke to indicate that their typical payments are delayed by at least 4-6 months and that affects their projects significantly. It is in spite of these delays that projects continue to get installed in Tamil Nadu.

 IPP  developers that we spoke to indicate that if the payment was better and made as per the terms in the PPA and with  improvement in evacuation facilities, Tamil Nadu could continue to maintain its dominant position in wind installations. It is this position that has led to huge manufacturing bases and jobs in the state something that the decision makes need to consider. With some of the action shifting to Maharashtra and Gujarat in terms of installations, new manufacturing facilities are being located in those states.

Tamil Nadu needs to solve some of these issues proactively if it intends to keep its dominant position in the wind industry.

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