The Hindu Business Line : AP hikes tariff for wind power projects

Hyderabad, Aug. 12 The Andhra Pradesh Government has decided to raise the tariff for wind power projects to Rs 3.50 per kWh (kilowatt hour) to help and encourage the wind farm developers.

After a review meeting here on Tuesday, the Chief Minister, Dr Y.S. Rajasekhara Reddy, said the hike was considered because of the steep hike in prices of steel and other costs. The current tariff fixed in 2004 is Rs 3.37 per kWh.

According to an official release, there is a gross wind power potential of 8,275 MW in the State but the wind power installed capacity now is only 107.37 MW.

The release added that based on the representation of the wind farm developers, a committee had been constituted by the AP Transco to study the tariff and non-tariff issues concerning wind power projects. The committee consisted of members from AP Transco, DISCOMS, wind turbine manufacturers and NEDCAP.

The tariff recommended by the committee was Rs 3.37 per kWh for 10 years from the COD and allowing 5 per cent escalation from the 11th to 15th year. The tariff from the 16th year will be as per directions of the APERC.

It also said that control period for the policy is recommended as 5 years instead of 10 years and the energy generated, if not consumed during the billing month, would be treated to have been sold to DISCOM, which in turn will pay for such un-utilised energy.

The release further said that Chief Minister decided to further hike the tariff than the recommendations of the committee to attract more investments in the wind power sector.

More Stories on : Non-conventional Energy | Power | Andhra Pradesh

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