Indian Wind Turbine Manufacturers Association (IWTMA) today participated in the brainstorming session, ‘Chintan Baithak’ organized by the Ministry of New & Renewable Energy (MNRE) and submitted their recommendations to the Ministry.
Chairman Indian Wind Turbine Manufacturers’ Association said, “The wind energy sector has been reeling under tremendous pressure and struggling with the transition from FiT to reverse bidding with tariff cap regime resulting into the very low tariff. The tariff discovered is so low that it is neither bankable nor sustainable. Due to this, irrespective of bidding of 17Gw, the actual installation is around 700Mw. Also, in the last two years, against the country’s annual installed manufacturing capacity of 10Gw, only 15% capacity is utilized. This low capacity utilization is not sustainable by the sector and has severely affected 4,000 SMEs and 2 million jobs. At this rate, achieving the national target of 175Gw by 2022 will be a big challenge.
We appreciate the initiative of Honorable SEC – MNRE to have “Chintan Baithak’ of all stakeholders to address concerns of the industry and solutions to address those concerns.
Wind Sector with up to 90% localization is truly “Make in India” and FiT is more suitable for its sustained growth. Also, we need to unlock small and medium size investments at the state level and promote export to fully utilize manufacturing capacity and be a global hub for manufacturing wind power solutions. Keeping this in view, IWTMA suggested the following.
- Implement FiT & 5 yrs. a firm policy framework to develop 50 GW
- NIWE certified 3 wind zones: less concentration on 2 high windy States
- 5 yrs. tariff for each wind zone by CERC with yearly tariff reduction of 5 p.
- Tariff fixation should be as per national tariff policy
- SECI will provide PPA based on CERC tariff
- Under open access, waiver of ISTS charges for captive consumers
- Uniform Wheeling & Banking policy for captive power consumers in the states
- Feed-in-Tariff (FiT) policy for <25 MW for small domestic investors in States
- RPO Enforcement in states
- Encourage manufacturing with 30% Capital subsidy (from carbon cess), uniform 5% GST, 5% IGST & export incentive of 10%
We are confident that with the above initiatives, we will be able to provide affordable, sustainable and reliable energy to our nation. Also, it will create new jobs, both in rural and urban India. Last but not least, it will provide energy security to our nation and support achieve 175Gw by 2022.