Investments in wind repowering could total INR 400 billion: CRISIL
POWER & RENEWABLE ENERGY

Investments in wind repowering could total INR 400 billion: CRISIL

According to research firm CRISIL, the Ministry of New and Renewable Energy’s draught policy for repowering old wind power plants has the potential to spark investments worth INR 400 billion over the course of three to five years, which is nearly three times the average annual wind power capex seen in the previous four fiscals. Ankit Hakhu, Director, CRISIL Ratings, stated that, “this may result in the replacement of around 5 GW of obsolete windmills with new wind power facilities having two times more generation capabilities. Because such projects may yield double-digit returns at prices of around INR 4 per unit for the additional capacity, their feasibility appears to be strong.”

Since their typical power purchase cost is currently INR 4-5 per unit, a pricing like this might draw C&I clients through open access, according to Hakhu. As per the official press announcement, up until March 2018 the total installed wind capacity increased by almost three times, from roughly 13 GW in 2010 to 34 GW. However, the majority of these used windmills with hub heights under 100 metres and narrower turbines with capacities around 1.5 MW. Compared to more recent technologies, they produce less per unit of capital expenditure.

New windmills can operate at hub heights over 150 metres, and they can use turbines with a capacity of more than 3 MW to produce more power per unit of machine capital expenditure. This can make use of locations with significant generating potential but now only have older generation turbines.

According to research firm CRISIL, the Ministry of New and Renewable Energy’s draught policy for repowering old wind power plants has the potential to spark investments worth INR 400 billion over the course of three to five years, which is nearly three times the average annual wind power capex seen in the previous four fiscals. Ankit Hakhu, Director, CRISIL Ratings, stated that, “this may result in the replacement of around 5 GW of obsolete windmills with new wind power facilities having two times more generation capabilities. Because such projects may yield double-digit returns at prices of around INR 4 per unit for the additional capacity, their feasibility appears to be strong.” Since their typical power purchase cost is currently INR 4-5 per unit, a pricing like this might draw C&I clients through open access, according to Hakhu. As per the official press announcement, up until March 2018 the total installed wind capacity increased by almost three times, from roughly 13 GW in 2010 to 34 GW. However, the majority of these used windmills with hub heights under 100 metres and narrower turbines with capacities around 1.5 MW. Compared to more recent technologies, they produce less per unit of capital expenditure. New windmills can operate at hub heights over 150 metres, and they can use turbines with a capacity of more than 3 MW to produce more power per unit of machine capital expenditure. This can make use of locations with significant generating potential but now only have older generation turbines.

Related Stories

Gold Stories

Next Story
Resources

Schindler named among Forbes’ World’s Best Employers 2026

Schindler has been named among Forbes’ World’s Best Employers 2026, a global ranking recognising companies for their workplace environments.Compiled by Forbes in partnership with Statista, the ranking is based on independent employee feedback, including whether employees would recommend their organisation to friends and family.The company said the recognition reflected its focus on creating a workplace where employees can develop their expertise and build careers. ..

Next Story
Infrastructure Urban

India needs an export-execution mindset: Vishesh Jain

Interview with Vishesh Jain, Founder & CEO, EximpleWhat gaps in India’s global trade ecosystem led you to build Eximple, and what problem did you see businesses struggling with most?Eximple came out of a problem that all three founders had seen from different choke points in the trade ecosystem. India has millions of MSMEs and manufacturers, and many of them can make products that are genuinely competitive on quality. Yet only a small fraction is able to build meaningful international businesses. In our experience, the gap is usually not manufacturing capability; it is the ability to exe..

Next Story
Building Material

Nuvoco reports 13.5% revenue growth in Q2 FY27

Nuvoco Vistas Corp. Ltd. reported consolidated revenue of Rs 27.9 billion for Q2 FY27, up 13.5% year on year. Cement sales volume rose 9% to 4.7 million tonnes (MMT), while EBITDA increased 11% to Rs 4.11 billion.The company said it began its cement operations in 2014 with a 2.3 MMT per annum (MMTPA) operation at Nimbol. It now aims to reach 35 MMTPA of cement capacity by FY28, nearly 15 times its initial capacity. Its portfolio spans cement, ready-mix concrete and modern building materials.On sustainability and cost efficiency, Nuvoco partnered with CleanMax for a 46.4 MW wind-solar hybrid re..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

SPECIAL OFFER
QR Code