Auction for wind power on the anvil, says Piyush Goyal
- Kia Motors to roll out first car from Anantapur plant by 2019
- Govt revokes passports of Nirav Modi and Mehul Choksi
- Warren Buffett warns investors that safe-looking bonds can be risky
- Rotomac fraud: Lucknow court hands over custody of Vikram, Rahul Kothari to CBI
- PM Modi launches Tamil Nadu government’s Amma scooter scheme
New Delhi: After tasting success in solar energy auctions which helped bring down tariffs, the government is looking to soon start bidding for the wind power sector, power minister Piyush Goyal said on Wednesday.
“Solar power auctions have benefited immensely. It’s (wind power auctions) on the way, its on the anvil. In fact I have just come from a meeting where I was telling my officers to speed that up,” he said.
“Over the years, the wind people were so used to the feed-in tariffs that they were resisting it on the ground that its distributed all across small units, it won’t work. But, I realise that pricing that you get out of these feed-in tariffs is never going to be the most optimal tariff.”
Fortunately, the success of solar power tariffs has brought solar power prices down by 40% in the last 12 to 17 months.
It has become the benchmark for wind power, he added. “So wind is suddenly started facing the wind of solar and their pricing is becoming unviable so now they are coming back to me and are ready and willing to go for the auctions,” Goyal, who also holds the charge of power, coal and mines ministries, said.
On high prices in the coal auctions impacting firms, he said, “I did not set the auction price. It was a free and frank and transparent and open auction. And everybody was free to bid who wanted the coal. I never asked the companies to bid a particular price more or less. I didn’t interfere.”
Taking a dig at the firms which bid in the auctions, Goyal said, “Private sector bid for that coal and they are so smart I am sure that they bid the right price... Now those smart people have bid for that coal, they pay for that coal.
“I think it’s a fair deal. you can’t have a deal where the private sector is smart while they make money and they are not smart and it’s my duty to bail them out when they lose money.”
On increasing share of renewable energy in India’s energy mix, the minister said government has set a target achieving 40% of installed capacity through renewables and reduce the carbon intensity of the GDP by 30-35% by 2030.
Energy requirements of the growing economy would triple by 2030 and hence making the role of research, innovation and development key in addressing issues in a holistic manner, he stressed.
On climate change and India’s role in it, Goyal said the country has its own development imperatives like bringing around 40% of its population out of poverty, feeding the hungry, creating jobs and physical infrastructure.
India, though on path of reducing carbon intensity, would require some room in order to boost to its manufacturing sector, which in turn would ride on the back of coal generated power in the near future, he explained. Goyal stressed that developed nations need to honour their commitments on helping developing nations with technology transfer and funding.