Not just Germany, several European countries including Belgium, Britain, France, the Netherlands and Switzerland too experience negative pricing
News reports suggest projects of about 4500 MW could be awarded over the next four months, which is quite significant given market estimates of mere 1500 MW addition this year.
Has the wind power industry reached a tipping point? With wind power cost touching a new low of Rs 2.64 per unit, it does seem so.
"Wind power tariff has fallen to record low of Rs 2.64 per unit in the tariff-based competitive bidding conducted by the SECI yesterday," an industry source said.
The minister also said it was time for the government to have a look at whether there was really a need to have separate Renewable Purchase Obligations.
"As per industry sources, the distribution utilities in states like Andhra Pradesh, Rajasthan, Karnataka and Gujarat are evaluating the competitive bidding mechanism for awarding wind power projects in the near term," Icra said in a statement.
"The government's target (for the 2017-18) I think is 4,500 MW. We know that we have number of challenges in front of us, but we will try our best to give around 6,000 (MW) in the current financial year," Indian Wind Turbine Manufacturing Association (IWTMA) Chairman Sarvesh Kumar said here.
The generators for wind turbines are manufactured in a factory in Gujarat's Vadodara city, which is the fourth such facility in the group.
Buoyed by drop in tariff to record low of Rs 3.46 per unit in the first auction of wind power, the government is mulling putting on the block more such projects next fiscal.
The tariff-based competitive bidding is being conducted by the state-owned Solar Energy Corporation of India (SECI) for wind power capacity totalling 1,000 MW for supply of power to non-windy states.
"Company has sold 33 MW Wind Power Assets situated in the state of Tamil Nadu at an effective valuation of Rs.165.19 crore," Techno Electric & Engineering Co said in a filing to BSE.
Techno Electric & Engineering Company shares rallied 5 percent intraday Thursday after sale of wind power assets by the company.
Competition Commission of India (CCI), which keeps a tab on unfair business practices has cleared the deal, as per the regulator's website.
After tasting success in solar energy auctions which helped bring down tariffs, the government is looking to soon start bidding for the wind power sector, Power Minister Piyush Goyal said today.
New capacity addition by the wind power sector may decline to 2,500 MW in current fiscal against that of 3,415 MW in last fiscal due to challenges faced by the segment in the two states of Madhya Pradesh and Maharashtra, rating agency ICRA said on May 30
The Indo Rama Synthetics' margins have seen a decline in FY16. This was mainly due to the rise in the price of raw materials.
India's total solar power generation capacity touched 6,763 mw as on March 31, 2016, according to the latest update on progress on clean energy initiatives.
Recently, the company had reduced equity holdings in its subsidiary, Pallavi Power, to 38.87 percent from 51 percent and further plans to divest 50-55 MW of biomass assets out of its total capacity of 106 MW.
Sumant Sinha, chairman and CEO of Renew Power, a company which delivers solar and wind power solutions, says while solar power costs are coming down in general, it is nowhere close to Rs 4.63. "I would think that the proper pricing of solar power is still there, in excess of Rs 5," he says.
By the end of 2020, China aims to increase non-fossil energy to 15 percent of total primary energy consumption, and sharply enhance the ratio of renewable energy in production.
Pawan Singh, director and chief financial officer, PTC India Financial Services told CNBC-TV18 that though wind energy is beneficial, the company will focus on solar power, which is seeing tremendous traction currently.
PP Gupta, managing director, Techno Electric says the company is exiting the wind power business to focus on its BOOT/BOOM projects in the transmission space.
In last year‘s Budget, the government had allotted around Rs 1000 crore for solar power projects
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