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					</table>The Appellate Tribunal for Electricity (<a href="https://aptel.gov.in/en" target="_blank" rel="noopener">APTEL</a>) has directed Andhra Pradesh distribution companies (AP DISCOMs) to deduct the Generation Based Incentive (GBI) amounts retrospectively from the wind project tariffs, starting from the date of the filing of the petition on February 14, 2017, until they were fully credited.
This decision aimed to rectify the omission of GBI consideration in the generic tariff orders dated August 1, 2015, and March 26, 2016, which violated Clause 20 of the APERC 2015 Regulations.
These regulations mandated the inclusion of all government incentives or subsidies in tariff determination. While earlier tariff orders had factored in Accelerated Depreciation (AD) benefits, the omission of GBI warranted rectification.
Consequently, the Southern Power Distribution Company of Andhra Pradesh and Eastern Power Distribution Company of Andhra Pradesh must refund the amounts representing the GBI benefit, illegally recovered from Green Infra Wind Solutions, along with simple interest at 12% per annum, at the earliest.
Background 
The GBI program was introduced in 2009 by the Ministry of New and Renewable Energy (MNRE) to promote wind power generation by offering ₹0.50 (~$0.0059)/kWh fed into the grid for up to ten years. This program, later extended during the 12th Plan period in 2013, included a financial cap of ₹10 million (~$117,526)/MW. It explicitly stated that GBI was over and above the State-determined tariffs. In 2018, APERC <a href="https://www.mercomindia.com/andhra-pradesh-withdraws-generation-incentive-wind" target="_blank" rel="noopener">withdrew</a> the GBI program.
Under the 2015 APERC Regulations, a single-part levelized tariff was determined for a useful life of 25 years. Clause 20 explicitly requires the inclusion of all subsidies or incentives, including GBI, in tariff calculations. However, GBI was not considered in the generic tariff orders for 2015-16 and 2016-17, which determined a tariff of ₹4.84 (~$0.057)/kWh without AD.
In February 2017, AP DISCOMs filed a petition seeking an amendment to the earlier orders, arguing that GBI benefits must be passed on to DISCOMs. Subsequently, Green Infra Wind Solutions entered a Power Purchase Agreement (PPA) with AP DISCOMs, adopting the 2016 tariff order. Notably, the PPA&#8217;s approval was explicitly subject to the outcome of the pending petition.
Green Infra Wind Solutions contended that the tariff fixed in the PPA at ₹4.84 (~$0.057)/kWh for 25 years was binding and could not be unilaterally amended. The company argued that GBI, as per MNRE guidelines, was over and above the State-determined tariffs, and retrospective tariff revision violated the principles of promissory estoppel and legitimate expectations.
On the other hand, AP DISCOMs argued that excluding GBI from tariff calculations unfairly benefited generators availing GBI over those opting for AD, creating inequity. They emphasized that APERC had a statutory obligation under Clause 20 to ensure compliance and retained the authority to amend tariff orders under Section 64(6) to promote equitable treatment and prioritize public interest.
Tribunal’s Analysis
APTEL analyzed that the omission of GBI consideration in the earlier tariff orders contravened Clause 20 of the 2015 Regulations, necessitating rectification. The Tribunal held that allowing generators to retain GBI while AD benefits were factored into the tariff would lead to unjust enrichment and irrational classification of wind generators.
APTEL also affirmed its authority to amend tariff orders under Section 64(6) and emphasized that retrospective adjustments would support the financial stability of AP DISCOMs and safeguard consumer welfare without affecting the generators&#8217; recovery of costs. It was noted that the PPA incorporated the tariff determined in earlier APERC orders but was explicitly subject to amendments under the regulatory framework.
The Tribunal ruled that GBI amounts availed by wind power generators must be factored into the generic tariff determined under the 2015 Regulations. It authorized the  DISCOMs to deduct GBI amounts from monthly bills from February 14, 2017, until the full amount was credited.
As a result, the Southern Power Distribution Company of Andhra Pradesh and the Eastern Power Distribution Company of Andhra Pradesh must promptly refund the amounts corresponding to the GBI benefit, which were unlawfully collected from Green Infra Wind Solutions, along with simple interest at a rate of 12% per annum.
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APTEL Rectifies Generation-Based Incentive Omissions in Wind Tariff Determination

The Solar Energy Corporation of India (SECI) has successfully auctioned 2 GW of Inter-State Transmission system (ISTS)-connected wind projects under Tranche III. ReNew Power has won the bid to develop 400 MW of wind power projects by quoting the lowest tariff of ₹2.44 (~$0.038)/kWh in the auction.
ReNew Power’s bid was just one notch lower than the lowest-ever wind tariff of <a href="https://mercomindia.com/wind-breaches-guvnls-auction/" target="_blank" rel="noopener">₹2.43/kWh</a> quoted in India so far. In all, four bidders quoted a tariff of ₹2.44 (~$0.038)/kWh, while four others quoted a tariff of ₹2.45 (~$0.038)/kWh.
The tariffs quoted in the auction ranged between a low of ₹2.44 (~$0.038)/kWh and a high of ₹2.65 (~$0.04)/kWh. This trend demonstrates that the developers of wind projects have no issues with the ongoing range of wind tariffs and think these tariff levels are sustainable, which is good news for the distribution companies (DISCOMs) and the consumers.
Green Infra Wind Energy and Inox Wind quoted ₹2.44 (~$0.038)/kWh to develop 300 MW. Torrent Power also quoted a tariff of ₹2.44 (~$0.038)/kWh to develop 499.80 MW.
Adani Green Energy quoted ₹2.45 (~$0.038)/kWh to develop 250 MW, Alfanar Company quoted ₹2.45 (~$0.038)/kWh to develop 300 MW, Betam Wind Energy quoted ₹2.45 (~$0.038)/kWh to develop 250 MW.
<a href="https://mercomindia.com/wp-content/uploads/2018/02/SECI-2-GW-ISTS-Wind-Auction-Result.png"><img loading="lazy" decoding="async" class="aligncenter size-full wp-image-9094" src="https://mercomindia.com/wp-content/uploads/2018/02/SECI-2-GW-ISTS-Wind-Auction-Result.png" alt="SECI 2 GW ISTS Wind Auction Result" width="556" height="320" srcset="https://cms.mercomindia.com/wp-content/uploads/2018/02/SECI-2-GW-ISTS-Wind-Auction-Result.png 556w, https://cms.mercomindia.com/wp-content/uploads/2018/02/SECI-2-GW-ISTS-Wind-Auction-Result-300x173.png 300w" sizes="auto, (max-width: 556px) 100vw, 556px" /></a>A SECI official confirmed the culmination of 2 GW Tranche III wind auction to Mercom. When asked to give the details about the auction (who will be awarded what capacity), the SECI official said, “Other than Betam Wind Energy, all the winners will be awarded the respective capacities they have bid for.<span style="display: inline !important; float: none; background-color: transparent; color: #333333; cursor: text; font-family: Georgia,'Times New Roman','Bitstream Charter',Times,serif; font-size: 16px; font-style: normal; font-variant: normal; font-weight: 400; letter-spacing: normal; orphans: 2; text-align: left; text-decoration: none; text-indent: 0px; text-transform: none; -webkit-text-stroke-width: 0px; white-space: normal; word-spacing: 0px;">”
As Betam was the last successful bidder in the auction, it will be awarded a capacity of 50.20 MW to develop. If they do not wish to develop this capacity, the SECI will go ahead with the implementation of the remaining 1949.80 MW.
Speaking to Mercom, another SECI official said, “We are pleased with the tariffs quoted. After the successive auctions, tariffs (wind) are stabilizing around ₹2.50 (~$0.039)/kWh mark, it’s a win-win. This shows that the next wind auction for another 2 GW will see frenetic action.<span style="display: inline !important; float: none; background-color: transparent; color: #333333; cursor: text; font-family: Georgia,'Times New Roman','Bitstream Charter',Times,serif; font-size: 16px; font-style: normal; font-variant: normal; font-weight: 400; letter-spacing: normal; orphans: 2; text-align: left; text-decoration: none; text-indent: 0px; text-transform: none; -webkit-text-stroke-width: 0px; white-space: normal; word-spacing: 0px;">”
<a href="https://mercomindia.com/wp-content/uploads/2018/02/IMG_14022018_105303_0.png"><img loading="lazy" decoding="async" class="aligncenter size-full wp-image-9090" src="https://mercomindia.com/wp-content/uploads/2018/02/IMG_14022018_105303_0.png" alt="Lowest Wind Tariff Discovered in Reverse Auction" width="436" height="304" srcset="https://cms.mercomindia.com/wp-content/uploads/2018/02/IMG_14022018_105303_0.png 436w, https://cms.mercomindia.com/wp-content/uploads/2018/02/IMG_14022018_105303_0-300x209.png 300w" sizes="auto, (max-width: 436px) 100vw, 436px" /></a>
“Wind auctions are beginning to consistently come in at tariffs that are comparable to the <a href="https://mercomindia.com/records-keep-falling-bhadla-solar-park-auctions-tariff-breaches-rs-2-50-0-038kwh-500-mw-phase-iii-solar-park-auction/" target="_blank" rel="noopener">lowest</a> solar tariff (₹2.44 (~$0.037)/kWh quoted in the Bhadla Solar auction). Wind projects are starting to look attractive again for DISCOMs considering these tariffs do not have the uncertainty of safeguard and anti-dumping duties like solar. Some of the renewable developers who are active in both wind and solar might also start favoring wind as risks continue to mount in the solar sector,” said Raj Prabhu, CEO of Mercom Capital Group.
&#8220;Just like solar we need to wait and see if these projects are viable at these low tariff levels,&#8221; he added.
Mercom had <a href="https://mercomindia.com/seci-tenders-2-gw-wind-projects/" target="_blank" rel="noopener">predicted</a> this auction to be a success with tariffs around ₹2.60 (~$0.04)/kWh. The capacity being auctioned is massive, and there is enough space for all the major players to compete.

Wind Matches Lowest Solar Winning Bid of ₹2.44/kWh in SECI’s 2,000 MW Auction

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