Govt announced second round wind auction for 1,000 MW. Given the ambitious capacity addition target, will it be adequate?

The government’s target for the renewable energy sector seems to be really good and quite progressive. So far, the country has installed about 28 GW of wind-power farms. India’s push for clean energy solutions is also encouraging since the country has some of the largest polluted cities. As the energy sector grows, increased investment in cleaner energy sources could help combat India’s pollution problem by reducing the country’s dependence on fossil fuels. India’s wind energy sector witnessed unprecedented acceleration since last 3 years, propelled by technology and encouraging policy environment for renewable by the government.

Wind OEMs are increasingly getting familiar with component performance trends, seal compatibility issues, filtration challenges and basis of the new compliance of IEC 81400-4. At Shell Lubricants, technology leadership is about excelling in three key areas: technology innovation, technology application and technology partnerships.

We will ensure that we continue to offer the most promising value proposition for wind sector through our innovative products and superior technical services.

Akhil Jha, Chief Technology Officer, Shell Lubricants India
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Second round of 1GW wind capacity auction was launched by the Ministry of New and Renewable Energy (MNRE) in the beginning of this month. Simultaneously Power Trading Corporation and the electricity distribution companies (discoms) of six states signed the agreement for completion of the first auction that was held in February this year. Five companies that won the rights to set up 1.05 GW of wind power and to sell their electricity to PTC can execute the project now. Re-discovered process to buy wind power at a lowest price may help government to enforce renewable purchase obligation (RPO) across all the states as mandated by the law. Wind power industry is enthused by the announcement of the auctions, however apprehensions about achievement of the business feasibility at such low wind tariff is still under question.

Dr Sanjiv Kawishwar,
Sr. Vice President,
ReGen Powertech Pvt Ltd

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The move by the union government is positive but a strong buy in from the states is critical to the success of the auction. The auction will ensure that the non-windy states meet its RPO obligations. I am confident that such steps will accelerate wind capacity addition in the country and will help the industry to achieve the government’s renewable energy target. However the government should consider a state-wise bidding for the recently announced 1,000 MW to avoid high cost of land and increase in logistics cost.

Tulsi Tanti,
Chairman and Managing Director,
Suzlon Energy Ltd