The wind industry is divided over abolition of ‘accelerated depreciation' benefit (which allowed higher depreciation for calculating taxable profits in the first year of buying a wind turbine.) While the Indian Wind Turbine Manufacturers' Association (IWTMA) has expressed dismay over the scrapping of AD, and has called for its restoration, a section of wind power developers have welcomed the move.

In a related development, several wind power developers, who met on Wednesday, have decided to form a new association, which is likely to be called Wind IPPs Association. It is learnt that Independent Power Producers Green Infra, Renew Power and Mytra Energy are among those who pioneered the formation of this association.

The proponents of the proposed Wind IPP Association feel that their issues are “different” and hence a new body.

They say that in the last one year private equity investments of $1 billion have flowed into wind IPPs in India, and therefore a “separate voice” is required. They point out that after all, if there is a problem with coal, it is companies like Tata Power and Lanco that go to the Government, not BHEL or L&T.

IIT-Madras project

The Indian Institute of Technology, Madras, is on a major project to make solar power doable in India, said Prof Ashok Jhunjunwala of the Institute. Speaking at a conference on renewable energy organised by the Institute of Financial Management and Research, the Professor did not want to discuss IIT's ongoing project in detail, but said that the work covers several aspects of technology.

But at the heart of the issue is this question: why should we continue to use AC (alternating current) devices? DC devices are far more energy efficient. For instance, a DC motor is 2.5 times more energy efficient than an AC motor, Prof Jhunjunwala says. A 5-hp AC water pump can be replaced by a one-hp DC water pump and the output of water will still be the same, he says.

The problem with solar, however, is that it is extremely fickle and power fluctuations can vary even over small periods of time, even on a sunny day. But this can be tackled through the use of smart controllers. IIT-Madras is trying to develop them.

Karnataka gives time to revise prices

Solar power developers who have bid for projects under the Karnataka Solar Mission have been given time till April 16 to revise (down) their price bids. Nineteen developers have cleared the ‘technical bid' stage under the State's 80 MW programme. These companies can now revise their price bids.

The announcement of winners of the technical bids comes after a delay, almost three months after the bids for the projects closed in November last year.

 “Since there has been a lag in announcing winners of technical bids, the companies are given an option to revise the prices they have quoted,” says Mr Prasanna Kumar, Managing Director, Karnataka Renewable Energy Development Ltd.

The decision to permit companies to re-quote prices could benefit the government as bidders might reconsider and increase the discounts they offer. Experts believe that after a company (Alex Green) offered prices as low as Rs 7 a unit to set up a project in Odisha, the Government could hope for similar offers by companies in Karnataka.

mramesh@thehindu.co.in

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