Via Quixotes last stand:
India’s move to stabilize its power grid by asking wind farms to accurately predict their output a day in advance or face fines will deepen the slowdown in Asia’s second-biggest wind market,Tata Power Co. (TPWR) said.
A directive took effect this week ordering wind farms with a capacity of 10 megawatts or more to forecast their generation in 15-minute blocks for the following day. Missing estimates by more than 30 percent will incur penalties.
“Forecasting at 15-minute intervals is very challenging,” and could cost a 100-megawatt farm an estimated 250 million rupees ($4.2 million) a year, Tata Power said in an e-mailed response to questions. “Developers will see this as a further handicap” and penalties will “jeopardize” the industry’s growth, the nation’s second-biggest developer said.
India’s wind market is already reeling from a 42 percent plunge in turbine installations in the last financial year after the government withdrew subsidies. Some of the biggest developers including Tata Power, CLP Holdings Ltd. (2), and Goldman Sachs Group (GS) Inc.-backed ReNew Wind Power Pvt. have slowed plans for new projects, while turbine sales plunged forSuzlon Energy Ltd. (SUEL) and Gamesa Corp Tecnologica SA. (GAM)
The order from India’s Central Electricity Regulatory Commission took effect yesterday. Wind farms will use seasonal records and weather forecasting tools for their estimates. Fines will be paid to state utilities through a new Renewable Regulatory Fund.
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