India needs wind tariffs above INR 5/kWh - Suzlon head

The rates for India wind power in new off-take contracts should remain above INR 5.00 (USD 0.074/EUR 0.066) per kWh for projects to be economically viable, says Tulsi Tanti, head of wind turbine maker Suzlon (BOM:532667).

Tanti said, as cited by The Financial Express, that tariffs above that level would ensure an internal rate of return (IRR) of at least 14%. Otherwise banks will not be willing to lend to the wind power industry.

The comments follow the Ministry of New and Renewable Energy's (MNRE) announcing of a plan last month to launch an online auction for 1,000 MW of wind farms. Solar Energy Corp of India (SECI) was assigned as the agency in charge of the scheme.

Suzlon’s head expects India to expand its wind power capacity by 30% in fiscal 2016/17 by adding 4,300 MW. Andhra Pradesh will be number one in capacity deployment, followed by Gujarat, Madhya Pradesh, Karnataka, Rajasthan and Maharashtra, Tanti told reporters, as cited by the Press Trust of India (PTI).

Tanti also commented on Suzlon’s expected performance in fiscal 2016/17, saying that the company will secure a 40% share of the Indian market, as compared to 27% in fiscal 2015/16.

(INR 100 = USD 1.482/EUR 1.330)

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