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The factors include delay in land acquisition, lack of power evacuation infrastructure, non-signing of power purchase agreements and non-compliance of renewable energy purchase obligations (RPOs).
A problem that the wind industry points out is the law-and-order problem in some states that leads to delays in setting up wind projects.
“Implementation is becoming tougher with each passing year. In practice, even with twice the compensation as per government notified rates, the landowners are not allowing us to work on transmission lines and producers face multiple issues related to theft, filing FIRs, etc.,” said Parag Sharma, president of WIPPA.
According to WIPPA, wind energy project tenders of around 2.5 GW were cancelled in the last two years and 5 GW in the last five years apart from many solar energy projects. Lower availability of the wind sites, high tariff of the wind energy, delayed PPA signing, lack of the evacuation infrastructure, lower participation of the bidder and undersubscription of the bids are some of the factors contributing to the cancellations. “While the lowest tariff bidding system led to capacity addition only in a few states, transmission infrastructure plan was unevenly distributed,” Sharma said.
Much of the wind tenders now come as a part of firm and dispatchable renewable energy (FDRE) projects, which are bundled with solar power. Pure wind tenders are much less and will likely remain the same in the future, according to industry experts.
Around 60 GW of renewable energy projects that were tendered in the last few years remain without power purchase agreements. The government has said that it is working on resolving the issues leading to non-signing of purchase agreements with distribution companies.
“Unlocking the full potential of wind energy in India requires a focused approach that addresses structural challenges such as land acquisition issues, transmission constraints, and procedural delays,” N Venu, managing director and CEO, Hitachi Energy , India and South Asia said.. Proper planning of future needs, especially by states, is the need of the hour, Sharma of WIPPA said, adding that there is enough demand for renewable energy.
“We are optimistic about the sector’s long-term growth trajectory. With continued focus on grid modernization, hybrid solutions,and digitalization, we hope to see more momentum in the coming time, which aligns with the country’s renewable energy ambitions,” Venu said.
