: Move to repower old wind power plants likely to help attract investments worth Rs 40,000 cr: Report #FinanceIndia #StockMarketNEWS Move to repower old wind power plants likely to help attract investments

@StockMarketNEWS Tue 17 Jan, 2023

Posted in: #FinanceIndia #StockMarketNEWS

Move to repower old wind power plants likely to help attract investments worth Rs 40,000 cr: Report #FinanceIndia #StockMarketNEWS
Move to repower old wind power plants likely to help attract investments worth Rs 40,000 cr: Report New Delhi, Jan 16 (KNN) The draft policy for repowering old wind power plants is a right step in the direction to increase wind power generation in the country and to attract investments worth Rs 40,000 crore, said Crisil Ratings.

According to the report by rating agency, the draft policy put forward by the Ministry of New and Renewable Energy’s (MNRE) will help attract the potential investment in next 3-5 years.

The draft ‘National Repowering Policy for Wind Power Projects, 2022’ was put for public consultations on October 17, 2022.

Speaking about the report, Ankit Hakhu, Director, of CRISIL Ratings said that “This (investment) may lead to replacement of 5 GW of old windmills with new wind power plants with 2x more generation ability. Their viability looks good because such projects can generate double-digit returns at tariffs of Rs 4 per Unit.

“Such a tariff can attract commercial and industrial customers through open access, because their average power purchase cost today is Rs 4-5 per unit,” Hakhu added.

Wind power capacity additions began in India over two decades ago, driven by the government’s supportive policies. India started harnessing wind power in the late eighties and currently the total capacity installed in the country is 41.4 GW, reported print.

After 2018, wind capacity additions slowed in India and one of the key reasons for this slowdown was the shortage of wind sites with high generation potential.

Going ahead, the success will depend on the speed at which the policy is implemented and approvals granted by state power distribution companies and regulators. (KNN Bureau)