Greentech Lead India: The Government of India has set a target of 15000 MW of wind power to be installed during 12th Plan period.
A total capacity of 18551 MW from wind energy has already been established in the country. This is around 9 percent of the total installed power capacity in the country.
With 7,154 MW, the state of Tamil Nadu has the largest installed wind power capacity accounting for 40 percent of the country’s total installed capacity, followed by Gujarat and Maharashtra with 3,093 MW and 2,976 MW respectively.
The capital expenditure for setting up one MW wind power project is approximately Rs.6 crores.
Union Budget India 2013-14: Generation Based Incentives (GBI) for wind projects reintroduced
With GBI reintroduced, the wind power industry is expected to regain the lost momentum.
In 2012, wind power investments in India reduced drastically for the first time over the last 20 years. Analysts attributed this decline to lack of policies and other issues such as poor grid connectivity and lack of financials for the providers.
However, government sources reiterate that the Government has been promoting wind power projects through private sector investment by providing fiscal and promotional incentives such as 80 percent Accelerated Depreciation, concessional import duty on certain components of wind electric generators, excise duty exemption to manufacturers.
10 years tax holiday on income generated from wind power projects is also available.
Loans for installing windmills are available from Indian Renewable Energy Development Agency (IREDA) and other Financial Institutions.
To further boost the wind investments, the Government is providing technical support including wind resource assessment and preferential tariff is for potential states.
Potential sites for wind power projects have been identified. A total of 701 wind monitoring stations have so far been established in the country. The data collected is available with C-WET, which is used by various stake holders in wind sector.
Tamil Nadu has been actively pursuing renewable energy sources like solar and wind to achieve self-reliance.
The revival of the generation based incentive scheme has boosted the confidence of wind power providers in the State. Tamil Nadu hopes to add 5,000 MW in wind power in the next five years.
Following the withdrawal of GBI in April 2012, Tamil Nadu witnessed drastic fall in wind power capacity with only 173 MW capacity added to the grid as on January 31 this year while Maharashtra has added 242 MW in the grid while Gujarat has installed 226 MW.
Tamil Nadu state has made 3 percent Solar Purchase Obligation (SPO) mandatory till December 2013 and this will increase to 6 percent from January.