“23rd February, 2017 will be remembered as a historic day in the Indian Wind industry, with the first tariff-based bidding being held and having received bids of less than Rs.4/- per unit. Renewables have received a shot in the arm and will witness a growth in volumes in the country. Currently wind projects are limited to 7-8 wind rich states in the country where capacity addition continues. Tariff based bidding is a game changer in the industry, coupled with indirect support from the Government like central transmission utility (CTU) network connectivity will open new markets and lead to expansion of wind energy across the country.
The sub Rs. 4/- per unit tariffs are competitive due to multiple factors viz new breed of efficient turbines, softening of interest rate regime, lowering of return expectations by investors and the opportunity to enter new markets. This will help the industry to achieve the Government’s target of 60 GW in wind as part of the 175 GW target of renewable energy by 2022. We expect the current bid results to accelerate wind capacity addition in the country and would offer significantly higher market potential for market leaders like Suzlon.”