CM raises tariff for wind power projects to Rs 3.50 kwh

Hyderabad, Aug 12 (UNI) Andhra Pradesh Chief Minister Y S Rajasekhara Reddy today decided to raise the tariff for Wind Power projects to Rs 3.50/kwh to encourage the wind farm developers, taking into account the steep hike in the prices of steel and other input costs.

There is a gross wind power potential of 8,275 mw in the state but the present installed wind power capacity was only 107.37 mw.

The state stood second in terms of gross wind power potential in the country after Gujarat. The wind conditions in Andhra Pradesh are comparable to wind conditions in Gujarat, Maharashtra, Rajasthan and Madhya Pradesh, according to an official release here.

Based on the representation of wind farm developers, a committee was constituted by the AP Transco to study the tariff and non-tariff issues concerning wind power projects. The committee, comprising members from AP Transco, DISCOMS, Wind Turbine manufacturers and NEDCAP, recommended Rs 3.37 kwh for 10 years period from the COD and allowing 5 per cent escalation from the 11th to 15th year.

The tariff from the 16th year will be as per directions of the APERC. The Control period for the policy recommended five years instead of ten years and the energy generated, if not consumed during the billing month, would be treated to have been sold to DISCOM and DISCOM will pay for such un-utilized energy at 85 per cent per unit.

The Chief Minister, who chaired a meeting attended by Energy Minister Mohd Ali Shabbir, Energy Special Chief Secretary AK Goel, AP Invest CEO C S Rao, AP Transco Managing Director Ajay Kallam and officials decided to further hike the tariff than the recommendations of the committee to attract more investments in Wind Power sector in the state, the release added.

UNI VA ROY MIR ND1835