Wind power developers’ choice of TN not a surprise: Experts

M Ramesh Chennai | Updated on January 12, 2018


‘State has better wind resources than others’

Wind power developers have picked Tamil Nadu for putting up their projects, but that is no surprise, according to many experts.

First, if the tariffs are going to be competitively determined and the bidders have to quote low, they might as well choose Tamil Nadu, a state that has the best wind resources among the eight states that have any wind energy potential.

Andhra Pradesh is not bad, but experts say that the feed-in tariff in that state is good (₹4.83 a kWhr) and about 2,000 MW of capacity is already coming up there.

‘Logical choice’

Sunil Jain, CEO and Executive Director of Hero Future Energies, which has bid for 150 MW in Tamil Nadu and 100 MW in Karnataka (the only bidder who has chosen a state other than Tamil Nadu or Gujarat) said that the choice of Tamil Nadu was “logical”. Also, the windy areas in the state are nearest to the central grid than in any other state, so it is easy to connect the wind farms — which is the developer’s responsibility — to the grid.

There is also speculation that some wind turbine manufacturers, who typically have control over land, may have offered the same parcel of land to more than one developer to sweeten their offer of products. The problem will arise if more than one bidder wins mandates, and they all demand the land.

If Tamil Nadu wins all or most of the 1,000 MW on offer, questions such as availability of land and evacuation infrastructure will arise, said one industry expert who did not wish to be named. It is a “drama unfolding,” he said.

Published on January 10, 2017

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