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India

Indian state regulator bars additional wind power purchases

INDIA: The windy state of Karnataka, which was considered a safe haven for wind power, is the latest state in India to stop wind power procurement and signalled a shift to auctions.

Karnataka has approximately 3.8GW of cumulative installed wind power capacity
Karnataka has approximately 3.8GW of cumulative installed wind power capacity

In a submission to the state energy department, the state regulatory commission argued the state already has a power surplus and has also met its renewable purchase obligations for the next two years.

It further argued that any additional wind procurement will affect its contractual obligations with conventional power plants.

Taking a note of the record low prices in the federal wind power auctions early this year, the regulator set aside its own tariff order awarded earlier and indicated that future procurements, as and when they happen, would only be done through auctions.

This move effectively closes the window on the FiT regime in the state that had sustained the industry for more than two decades.

The only options for new investors in Karnataka would be participate in Federal auctions, self-use or a private sales contract.

Karnataka had cumulative installed wind power capacity of 3,798 MW, of which 2,787 MW (as on 31 March 2017) is contracted to the state utilities under FiT rates.

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