Factors influencing grid interactive wind power industry in India

Abstract

Increasing wind power capacities demand increased private sector participation while states are responsible for the renewable projects as well as for achieving their renewable targets. The paper aims at identifying the influencing factors in scaling up of grid interactive wind power through the lens of entrepreneurs and state policies. Adequate tariff, savings on power expenditure in industries, renewable purchase obligation (RPO) targets, long-term power purchase agreements, liberal energy banking and favourable open access policies are found to be encouraging while insufficient tariff, delayed payments, policy uncertainties, limitations in energy banking and difficult land processes are counted as barriers. Country level analysis reveals that presently the installed capacities are unable to respond to the state wind tariff though it strongly responds to the power tariff for industries. Suggestions to develop a policy scenario wherein the installed capacities respond to the state tariff are proposed. The scope of wind power is to be enhanced through favourable open access policies and high RPO targets.