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APTEL stays Tamil Nadu wind auction temporarily

Power News - Published on Thu, 14 Feb 2019

Image Source: The Economic Times
Economic Times reported that renewable energy developers have been opposing ceiling tariffs at auctions for projects ever since they began, but government agencies conducting the auctions, keen to keep tariffs low, have been adamant about imposing them. The Indian Wind Turbine Manufacturers Association has finally taken the first step to oppose such tariffs, by petitioning the Appellate Tribunal for Electricity and getting a stay order.

In April last year, Tamil Nadu’s power regulator, Tamil Nadu Electricity Regulatory Authority set a feed in tariff for wind power of INR 2.80 per unit. State power regulators continue to set feed in tariffs for wind projects, depending on various factors such as speed, intensity of wind etc, but state agencies conducting auctions have lately been ignoring them, preferring to hold auctions and thereby get a still lower tariff.

Subsequently, TNERC also approved a proposal by Tamil Nadu’s main discom, the Tamil Nadu Generation and Distribution Co to conduct a wind auction of 1500 MW in three tranches of 500 MW each at a ceiling price that was even lower, INR 2.65 per unit.

Following this development, IWTMA petitioned APTEL that TNERC’s feed in tariff was itself too low, and TANGEDCO's ceiling price lower still. The petition said the costs incurred in setting up wind projects had been calculated wrongly by TNERC, and further, its decision to allow the discom to conduct an auction at an even lower tariff augured badly for developers.

Source :

Posted By : Rabi Wangkhem on Thu, 14 Feb 2019
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