Greentech Lead: Electricity generated from wind power projects in India is close to achieving grid-parity with conventional electricity, said Minister for New & Renewable Energy, Farooq Abdullah.
Tamil Nadu offers the lowest buy back rate of Rs. 3.51 per Kwh among the Indian states that have significant wind power potential. Karnataka holds the second position in terms of lowest buy back rate at Rs. 3.70 per Kwh.
Among these states, Rajasthan and Maharashtra are the two states that buy wind energy at more than Rs. 5 per Kwh.
Power crisis is worse in states like Tamil Nadu. The state government of Tamil Nadu has initiated several incentives and compulsory renewable energy buyback programs.
The state currently supplies electricity at a rate of Rs. 5.75 per unit – for domestic connections that use more than 500 units every two months. These rates, however, is the second lowest in an Indian state after Gujarat.
Tariffs Notified by SERCs for Wind Energy
|  State | Buy back rate (Rs.per Kwh) |
| Andhra Pradesh | 4.70 |
| Karnataka | 3.70 |
| Madhya Pradesh | 4.35 |
| Maharashtra | 3.78-5.67(depending upon wind zone) |
| Rajasthan | 5.18 – for Jaisalmer area5.44 – for rest of Rajasthan |
| Tamil Nadu | 3.51 |
| Gujarat | 4.15 |
| Kerala | 4.77 |
| Orissa | 4.48 |
Wind energy constitutes 9% of total installed power capacity in India
The Government has also increased its target of wind power capacity addition during the Twelfth Five Year Plan to 15000 MW from its previous target of 9000 MW during the Eleventh Five Year Plan.
The target for wind power capacity addition during 2012-13 has been set at 2500 MW.
The total installed capacity from wind energy at present is 18635 MW, of which a capacity of 1282 MW was added during 2012-13. This now constitutes 9 percent of total installed power capacity in India.
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.
A total wind power capacity of 711 MW has been installed in the country by PSUs. ONGC and HPCL lead the league with more than 50 MW wind installation each.
Wind energy market in India is plagued by wavering government policies, rising prices of important raw materials like steel and copper and difficulties associated with land acquisition
Union Budget India 2013-14: Generation Based Incentives (GBI) for wind projects reintroduced
The Government of India has reintroduced generation based incentives (GBI) to wind energy projects. Restoration of GBI is expected to give a boost to the wind energy market in India, say experts.