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A recent study conducted by CRISIL Ratings has revealed that wind repowering projects in India could attract investments of up to Rs 40,000 crore in the next five years. The report states that around 12 GW of wind power projects, which were installed before March 2017, are likely to be repowered, leading to an increase in capacity utilization and generation efficiency.
The wind power projects installed before March 2017 are running on a feed-in-tariff (FiT) regime, which has now been replaced by competitive bidding. Due to this, many wind power projects are facing low capacity utilization, leading to underutilized assets and revenue loss for project developers.
Wind repowering is the process of replacing old wind turbines with new and more efficient ones, leading to an increase in capacity utilization and better generation efficiency. The study by CRISIL Ratings estimates that wind repowering could increase the capacity utilization of wind power projects by up to 35%.
According to the report, wind repowering projects could generate a return on equity (RoE) of 11-13%, which is higher than the RoE generated by new wind power projects. Additionally, repowering could help in reducing the overall cost of energy, leading to cheaper electricity for consumers.
The study estimates that around 10 GW of wind power projects are likely to be repowered in the next five years, leading to an investment of around Rs 40,000 crore. The investments could come from project developers, investors, and lenders, leading to a boost in the renewable energy sector and the overall economy.
The report also recommends that the government should provide policy support to the wind repowering projects, including financial incentives and tax exemptions. This would help in attracting more investments and promoting the growth of the renewable energy sector.
In conclusion, wind repowering projects could potentially attract investments of up to Rs 40,000 crore in the next five years, leading to an increase in capacity utilization and generation efficiency. The investments could come from project developers, investors, and lenders, leading to a boost in the renewable energy sector and the overall economy.
With inputs from ChatGPT.
