Wind energy cos urge review of bidding guidelines, PLI extension

The country's leading wind turbine manufacturers association has urged the central government to review the bidding framework for wind projects as well extension of its flagship Productivity-Linked Incentive (PLI) scheme to turbine manufacturers. These would help significantly ramp up wind energy projects in the country, the Indian Wind Turbine Manufacturers Association (IWTMA) has said.

"Presently, the reverse bidding process is only allowing capacity installations of 1500 MW per year. If this is changed, the number of such installations can go up to 15000 MW per year. The current bidding process is allowing installations in only one or two states," chairman IWTMA, Tulsi Tanti, who is also the chairman of Suzlon Group, told Business Today in New Delhi.

Tanti was speaking at the curtain-raiser of the Windergy International Trade fair and Conference to be held from April 27-29 in the national capital Thursday.

An assessment carried out by the National Institute of Wind Energy (NIWE) for the Ministry of New and Renewable Energy (MNRE) has estimated a gross wind power potential of 302 GW in the country. Most of this potential exists in seven windy states of Gujarat, Rajasthan, Maharashtra, Tamil Nadu, Madhya Pradesh, Karnataka and Andhra Pradesh.

However, the industry has expressed concern that tariffs discovered based on the bids submitted under the reverse auction process make it viable for a majority of such projects to be constructed in the states of Gujarat and Tamil Nadu.

"Changing the process will allow projects to be built in all seven states because in each state the windy sites and velocity are different. So, there is a need to give a differential tariff treatment and that is why the demand for changing the bidding process must be addressed on priority," said Tanti.

Once that is done, the wind energy companies would be able to deliver 10000-15000 MW capacity per year instead of a mere 1500 MW currently, he claimed.

A suggestion in this regard from IWTMA is being examined by a government committee, which is expected to submit its recommendations shortly.

PLI extension

The industry has also sought the extension of the PLI scheme to the original equipment makers in the wind energy sector.

"The PLI scheme is required in the wind energy sector the way it has been rolled out for the solar energy sector. This is especially required for larger turbines of 3 MW capacity or the offshore wind turbines," remarked Tanti.

"To move to the next level - for example, in offshore - the PLI will play an important role," observed Balram Mehta, COO, ReNew Power.

India has fixed a target of 175 GW of renewable energy capacity by 2022, including 100 GW from solar, 60 GW from wind and the rest from bio-power and small hydropower projects. Currently, 27 per cent of the total installed power capacity in the country comes from renewable energy, of which 37.73 per cent or 40.13 GW is contributed by wind energy.

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