ReNew Power which is one of the country’s largest renewable energy firm, said in a recent release that company has enough capacity in the pipeline due for construction over the next 18 months, and will only quote tariffs that are sustainable in the long run.
Apart from the 4,100 MW commissioned capacity, ReNew Power has a pipeline of 2,400 MW projects, of which 1,500 MW is wind and the remaining solar.
Talking about a recent tender that mandated setting up of solar component manufacturing along with power projects, Sumant Sinha, chairman of ReNew power, said, “independent power producers (IPPs) are reluctant to get into manufacturing business on their own, and most manufacturers do not want to set up new capacity as there is a glut of capacity after China scaled down its solar targets earlier this year. The tender may attract renewed interest and companies will be willing to participate if the government tweaks a few conditions relating to the linkage of PPA and manufacturing.”
Talking about the debate around tariffs—whether the government’s decision to cap solar power tariffs at Rs. 2.5 per unit is justified—Sinha said that tariffs around Rs. 2.75 per unit would keep most IPPs in a comfortable spot and the government must look to increase the pace at which capacity is being built out at this point of time.