Wind Independent Power Producers Association (WIPPA) oppose competitive bidding for projects


Making of WIPPA, has been for quite some time now and they were officially launched at Renergy 2013, a conference organised by Tamil Nadu Energy Development Agency (TEDA). This association is composed of wind IPP’s or companies whose major business is to sell wind power generated electricity rather than those companies who set up wind plants to evade taxes. There are few other associations like Indian Wind Power Association and Indian Wind Energy Association.

WIPPA was formed because wind IPP’s felt they needed a separate voice and since its inception that have opposed the price discovery of wind power tariff through competitive bidding and moving the Judiciary to enforce renewable purchase obligation.

COMPETITIVE BIDDING

The president of WIPPA Sunil Jain believes that the price discovery for electricity generated by windmills would be catastrophic for the industry. Currently wind power generators sell electricity to either electricity distribution companies at tariffs as determined by the respective state electricity regulatory commissions or sell it directly the customers at negotiated rates. In his opinion, fixing tariff through competitive bidding has come too soon for the industry. This could lead to undercutting and result in low prices. Given the right time span could help IPP’s to be prepared for competitive bidding.

Off late, Rajasthan has declared a ‘competitive bidding tender’. The state has asked the interested parties to set up 300 MW of fresh capacity in state and sell the generated electricity at rates determined by a competitive bidding process. The industry feels that this example could be followed by other states and would not be good for the industry.

There are also other issues being raised by WIPPA, regarding the transparency in Purchasing of ‘renewable energy certificates’. They fear that law is not being followed properly which is majorly the fault of state regulatory commissions. This has been one of the reasons for wind power companies losing money.

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