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The disruption caused by India’s low clean energy tariffs is playing out, with rating agency Crisil cautioning that the risk profile of wind projects will increase. In a report, Crisil said that under-construction projects, as part of the feed-in tariff (FiT) regime, may be put up for auction by the states to further lower tariffs. While these projects didn’t have a power purchase agreement, work had started on them on the basis of the licences awarded by the states. Feed-in tariffs ensure a fixed price for wind power producers. Also, the firms that have quoted such competitive tariffs may generate only 12% equity internal rate of return (IRR), even after assuming high plant load factor (PLF) of 33-35% and a lower cost of borrowing at 9-9.5%, said the study.