Wind power has been acclaimed as the cheapest source of renewable energy in India. The wind generation capacity in India has reportedly increased over thirty years, and also holds the 4th position in the world with installations of over 31 GW at the end of March 2017.
The major wind power states have been cited as Gujarat, Tamil Nadu, Karnataka, Maharashtra, and Rajasthan. And, the latest estimate by the National Institute for Wind Energy has reported that the wind power potential stands at 302 GW at 100 metres. Wind energy has been hallmarked with a steep fall in prices and the rates are said to be competitive with the solar energy segment. The fall was highlighted during the auctions conducted by the Solar Energy Corporation of India (SECI), making renewable energy in India cheaper than coal-based power.
The dropping of prices has been reiterated by the wind power tariffs in the country, also highlighted at the reverse auctions recently that were conducted by the Gujarat Urja Vikas Nigam (GUVNL). Meanwhile, leading industry players feel that the fall in tariffs do not make sense as there is an entire pipeline of auctions that are announced by the government for wind and solar auctions.
The crash in tariffs has been attributed to the announcement made by the Narendra Modi government that revamped the India wind power market after nearly a year of stagnation. The power ministry announced guidelines for the state electricity utilities wanting to procure wind power from independent producers. The guidelines are cited to have cleared the way for various state governments to hold wind farm auctions.
Meanwhile, experts do not foresee any further fall in prices and caution that for the industry to stabilise, the prices should not fall further.