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Narendra Modi govt gives 600 MW stranded power projects second wind

A clutch of wind power units with a combined capacity of 600 MW that has never been put to use for the want of long-term buyers have been offered a ray of hope by the government, by allowing them to participate in the first ever auction for wind power. As the government is set to invite tenders for 1 gigawatt (GW) of wind power in order to help states without natural wind advantage meet non-solar renewable purchase obligation, along with the potential investors, these existing units can also bid.

These wind power units in crisis had come up on promises by some states that the power would be purchased by them on a long-term (20-25 years) basis. But that was not to be and investments of R4,000 crore are on the verge of being declared non-performing assets.According to sources, these existing projects without PPAs along with new ones in eight states in southern and western India would sell power to the ones in the north and east.

Government sources, however, said that the concern on the transmission congestion front is exaggerated as the only corridor currently facing issues is the western-northern line. With two Power Grid projects that are currently under way, congestion should cease to be factor by early next years, they said. Many states including Gujarat, Rajasthan, Maharashtra and Tamil Nadu have reached the threshold of wind capacity they can locally use.