Economy

Petitions against wind auctions by States may be withdrawn

Twesh Mishra New Delhi | Updated on January 09, 2018

According to government data, the present wind power installed capacity in the country is around 32.7 GW which is approximately 55 per cent of the total renewable installed power generation capacity.   -  Adeel Halim

Centre set to issue guidelines validatingState wind auctions



Wind energy project developers opposed to bids called by State governments may withdraw their petitions against the auctions.

“The government will soon issue guidelines to define norms to allow auction of projects by State governments. They will be in line with the auctions already conducted. The developers will have no locus standi then,” a government official told BusinessLine.

Guidelines soon

According to the agenda document for the conference of Power and Renewable Energy Ministries, “Wind bidding guidelines under Section 63 of Electricity Act, 2003 are likely to be issued by the Ministry of Power, which will enable the States to bid for wind power projects.” In a petition filed in October in the Gujarat High Court, the Indian Wind Energy Association had alleged: “The entire process of bidding is in contravention of Section 63 read with Section 86(1)(b) of the Electricity Act, 2003. It is submitted that in the absence of any guidelines by the Central government, the bidding process cannot continue.”

The court had then put the auction of 500 MW of wind energy by the Gujarat government on hold. But by November cleared the decks and allowed the auction to go ahead.

A similar situation had come about in Tamil Nadu where a petition was filed in the Madras High Court during the same time. But, the court did not intervene and the industry subsequently withdrew its petition.

“The auction for 500 MW of wind energy generation was concluded by the State with power purchase agreements being signed at ₹3.42 a kWh and ₹3.43 a kWh,” said Chairman of the Indian Wind Power Association K Kasthurirangaian.

The association then moved Supreme Court alleging the same.

Installed capacity

According to government data, the present wind power installed capacity in the country is around 32.7 GW which is approximately 55 per cent of the total renewable installed power generation capacity.

“If the guidelines issued by the centre coincide with those of the Gujarat state government conducted wind energy auctions, the industry will have to with draw its petitions,” Kasthurirangaian said.

Published on December 06, 2017

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