According to reports, Andhra Pradesh has potential to add 1,000 mw per annum of wind power projects but some local issues are holding up their implementation, according to Mr. K. Kasthoori Rangaian, Chairman of Indian Wind Power Association.
The State has potential to develop about 15,000 mw of wind power but lower tariff structure; clearances and need for power purchase agreements are matters that the association and independent power developers are concerned about to harness the potential of this vital renewable energy source.
Speaking to Business Line, Mr. Rangaian said entrepreneurs from Andhra Pradesh have made a mark in all sectors within the country, including power and infrastructure sectors and are setting up plants overseas.
Many of them have set up wind farms in other States but have not implemented them in AP. This is in spite of their keenness to set up projects. But are faced with issues such as lower tariff and need for power purchase agreements.
According to another representative of the association, the State offers a tariff of Rs. 3.50 per unit which is nearly Rs. 2 less than what the Central Electricity Regulatory Commission had recommended.
However, the State Regulatory Commission recently notified renewable power purchase obligation and accreditation of renewable energy generators. This move would enable power producers get renewable energy certifications and later allow them to trade them through exchanges. Thereby enabling them add to revenues indirectly.