France’s Engie SA, Dubai’s Abraaj to set up wind power platform in India
French energy firm Engie SA and Dubai’s private equity firm Abraaj Group on Wednesday announced a partnership to build a wind power platform in India.
“Together, Abraaj and Engie have identified a robust pipeline of wind power projects representing over 1 GW (gigawatt) in several key states,” the companies said in a joint statement.
The announcement comes in the backdrop of India’s wind sector transitioning from a feed-in tariff regime to tariff-based competitive auctions. While feed-in tariffs ensure a fixed price for wind power producers, wind power tariffs in India followed the solar route and hit a record low of Rs3.46 per kilowatt hour (kWh) in a February auction conducted by Solar Energy Corp. of India.
In such a scenario, obtaining finance at the lowest cost has become key to success, resulting in record low solar and wind energy tariffs.