COMPETITIVE BIDDING POSES A RISK ON THE FUTURE OF WIND ENERGY
The wind energy sector is in a distressed situation after the Union Government’s ‘tariff-based competitive bidding’ mechanism. Earlier, the SERCs used to fix ‘feed-in tariffs’ based on which, the the wind energy companies would sign PPAs with the distribution companies. Since the time this mechanism has changed (February), the state governments are not ready to sign PPA at the higher FiT rates, neither are they ready to take the competitive bidding route, thereby preventing any wind power installations from happening.
This has left the wind industry in a fix. Experts within the industry are predicting that there won’t be any new installations till March 2018. Specially the turbine manufacturers will suffer losses at least in this financial year and so will the image of the wind energy.
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