Andhra increases wind power tariff

Chief minister YS Rajasekhara Reddy has decided to raise the tariff for wind power projects to Rs 3.50 per unit, 13 paise more than what has been recommended by the committee set up to examine the issues of wind power projects.

The committee, comprising members from the Transmission Corporation of Andhra Pradesh (APTransco), power distribution companies (Discoms), wind turbine manufacturers and the state Non-Conventional Energy Development Corporation, has recommended a tariff of Rs 3.37 per unit.

According to an official press release on Tuesday, the chief minister decided to further hike the tariff to attract more investments in the wind power sector in the state.

At present, the Discoms are offering a tariff of Rs 2.70 per unit to the wind farm developers, which is stated to be not economically viable. In view of this, prospective entrepreneurs are setting up wind power projects in other states like Tamil Nadu, Karnataka and Maharashtra where tariff ranges from Rs 3.40 to Rs 3.50 per unit.

Consequently, the installed capacity at present is only 107.37 Mw though the gross wind power potential in the state is estimated at 8,275 Mw.

The Indian Wind Turbine Manufacturers Association (IWTMA) and wind farm developers have also requested for an upward revision of the tariff taking into consideration the escalation in price of steel and cement and the tariffs prevailing in the others states.