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Karnataka increases tariff
1 September 2001
Karnataka has approved 207 renewables projects for development with a combined capacity of 2481 MW, according to V.P. Baligar of the Karnataka Power Transmission Corp. How much of this is to come from wind is not yet known. The transmission company has also said it will increase its renewables electricity tariff by 5% this year, to INR 3.16/kWh ($0.070/kWh), up from INR 3.01/kWh. Baligar says that within the next five years, 10% of the approved capacity will be on-line-five years ahead of the state government's own schedule. Of the approximately 4350 MW of power generated in the state today, 37.8 MW comes from wind and the rest from mini hydro. Karnataka's wind potential has been estimated at 900 MW. Constrained by its forest clearance and land laws, the state government has issued orders to allow non-conventional energy projects to acquire siting permits through the Karnataka Industrial Areas Development Board. Karnataka's other initiatives to promote wind include allowing third party sale of power, exempting companies who generate their own wind power from electricity tax for five years, and deferment of sales tax for five years, depending upon the location of the project.
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