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Web Exclusive | November 2012

Wind power cos express mixed reaction to AP's tariff order

In Andhra Pradesh, wind power producers have mixed reactions to the State Electricity Regulatory Commission order awarding tariff of Rs 4.70 per unit for power generated from wind farms in the state. The order is applicable for developers who sign up power purchase agreements with discoms before March 31, 2015.

Some are happy that the tariff has gone up from Rs 3.50 per unit to Rs 4.70 but feel that it falls short of what States such as Rajasthan (Rs 5.44) and Maharashtra (Rs 5.69) are offering. The other provision regarding development of evacuation infrastructure up to the grid is seen as a dampener.

Anil Chalamalasetty, Managing Director of Greenko, told a business newspaper that while the company is happy that the State Government has taken to encouraging renewable energy sources such as wind and solar, the tariff could have been on par with some other States and close to what Central Electricity Regulatory Commission (Rs 5.30) had broadly indicated.

While the order does boost the power tariff by about Rs 1.20 paise, it adds additional burden on developers by expecting them to invest in evacuation, said a spokesperson of one of the developers. The provision regarding the need to develop the evacuation line up to the grid puts additional financial burden on the developers.

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