The tariff will be applicable for the entire life of the projects commissioned until March 31, 2024
India FIT
The ideal way for achieving a breakthrough would be to go in for an attractive feed-in tariff regime, with the approval of the State Regulatory Commissions. Trying to invite thousands of bids at the less-than-1MW range would end up being a non-starter.
Coming to the aid of small wind power players, the Centre proposes to continue with the feed-in-tariffs (FIT) mechanism for such producers.
Wind power developers in Karnataka are up in arms over a September 4 tariff order of the state power regulator, which they claim is unfair to projects of 599 MW, for which power purchase agreements (PPAs) have already been signed.
The disruption caused by India’s low clean energy tariffs is playing out, with rating agency Crisil cautioning that the risk profile of wind projects will increase. In a report, Crisil said that under-construction projects, as part of the feed-in tariff (FiT) regime, may be put up for auction by the states to further lower tariffs.
For the first time in the country , a feed-in tariff for rooftop solar power will be fixed by the Tamil Nadu Electricity Regulatory Commission (TNERC) soon.
Germany was one of the first countries to allow grid-connected solar rooftops by the way of feed in tariff, which meant that people got more money for the green power they generated than the power they consumed.
“With the market’s renewed focus on end-consumers, solar segment, rooftops are expected to grow in a big way. The biggest boost to rooftop solar uptake will be setting up of uniform FiTs (feed in tariff) across all states,” Ashish Khanna, ED and CO, Tata Power Solar said.
The Indian government must consider switching to a fixed feed-in tariff regime for the solar power sector as is in practice for all other renewable energy sectors, officials of India’s Yes Bank have told Bloomberg. Current tariffs derived through reverse auctions have been pushed to levels where projects would lose viability, the officials added.
“Bidding is now counter-productive,” Vineet Mittal, managing director of Welspun Energy Ltd., India’s biggest photovoltaic developer, said in an Oct. 10 interview in New Delhi. With global panel prices stabilizing after a three-year decline, auctions risk encouraging over-aggressive bidding that could lead to unviable projects, he said.
