After studying law I vectored towards journalism by accident and it's the only job I've done since. It's a job that has taken me on a private jet to Jaisalmer - where I wrote India's first feature on fractional ownership of business jets - to the badlands of west UP where India's sugar economy is inextricably now tied to politics. I'm a big fan of new business models and crafty entrepreneurs. Fortunately for me, there are plenty of those in Asia at the moment.
17% of electricity that states must purchase from clean energy producers in FY19, as per the centre’s Renewable Purchase Obligations (RPOs)
Image: Stephane Mahe / Reuters
Wind power producers were always paid at a pre-determined rate for the power they produced (feed-in tariff). But this allowed producers who could develop a site as a monopoly to pad costs and accrue returns far in excess of what a utility could expect.
Producers argued that setting up a wind site was more complex than setting up a solar site. At the same time, state electricity boards were scrambling to procure power from renewable producers. This allowed producers to get away with quoting higher tariffs.
In late 2016, the government said it intended to move from feed-in tariffs to a reverse auction method.
Why the sector faces headwinds
Once the government announced its intent to move to reverse auctions, there was a huge slowdown in orders.