Dual payment system creates risks for India wind-energy projects

New Delhi

INDIA'S wind-energy industry is seeing the viability of projects called into question as it adjusts to Prime Minister Narendra Modi's transition away from two separate systems to pay for clean power.

The government is shifting towards auctions to buy electricity from wind, phasing out feed-in tariffs that guarantee a fixed price to producers for their power. Utilities that pay for the power are pushing developers who qualify for the fixed payments to match the lower costs auctions are achieving.