Capacity addition in the wind energy sector was much better than predicted by ICRA last year. This was largely attributable to a bunching up of commissioning in March 2017. This in turn was the result of removal of generation based incentive (GBI) benefit and reduction in accelerated depreciation (AD) benefit with effect from April 1, 2017.
These apart, independent power producers were trying to utilise the current feed in tariff regimes in states where it existed – the apprehension being that in future, tariff based bidding, as exemplified by the award of projects by Solar Energy Corporation Ltd in February 2017, could largely replace feed-in tariff regime.
ICRA has gathered from industry sources that distribution utilities in states like Andhra Pradesh, Rajasthan, Karnataka and Gujarat are evaluating competitive bidding mechanism for awarding wind power projects.
The wind power capacity addition during FY2017 stood at 5.4 GW, increasing by 58% over the capacity addition of 3.4 GW achieved in FY2016. The solar power capacity addition stood at 5.5 GW in FY2017, reporting a significant jump of 83% as against the capacity addition of 3.0 GW in FY2016. Despite the record capacity addition in the wind segment, the annual capacity addition in the solar power segment exceeded the wind power segment for the first time, supported by the strong policy support and also the improved cost competitiveness of solar power against conventional as well as other renewable sources, including wind.
Nevertheless, the renewable energy sector reported a record capacity addition of over 11 GW in FY2017, an increase of around 60% over 7.1 GW reported in FY2016.
Large capacity additions in FY2017 in the wind power segment was mainly seen in the states of Andhra Pradesh (2190 MW), Gujarat (1275 MW) and Karnataka (882 MW), while large capacity addition in FY2017 in the solar power segment was mainly seen in the states of Andhra Pradesh (1294 MW), Karnataka (882 MW) and Telangana (759 MW). Marcus Cannon Authentic JerseyShare This