Wind Energy Sector in India : Overview, State wise Wind Feed-In-Tariffs (FIT) in India along with Benefits & Incentives for Windmill Power Projects in India

What a dramatic turn of events the Indian politics is witnessing & would witness in the coming 2014 elections bringing Indian politics at the “Inflection Point” ! Well, Renewable arena in India is also experiencing the same situation especially Wind and Solar Energy Sector in India.

Talking about Wind energy in India, all started well with wind since around 2002 till about end of 2011 as it enjoyed the benefits of Accelerated depreciation (AD) till April 2012. Also Generation Based Incentive (GBI), announced in 2011 was discontinued in 2012, only to be reintroduced in 2013 in the union budget.

Gujarat Solar Power Policy 2015

Now the Government is also planning to launch its first wind energy mission this year to give a boost to the wind energy sector and putting it in the same league as the high-profile solar mission. The ‘National Wind Energy Mission (NWEM)’, might be launched around the middle of the year. This might provide a great boost to wind energy sector which is experiencing slowdown since 2011 continually.

Current Wind Energy / Wind Power Scenario in India :

India is the fifth largest wind power producer in the world with an installed capacity of close to 20 GW ! So far approximately 29,536 MW of renewable power capacity have been installed in India, which includes  about 19,933 MW from wind, 2079 MW from solar, 3746 MW from small hydro and 3776 MW from bio energy.

The graph below, shows the  year wise installation of wind energy in India since 2002 till now :

Year Wise Wind Energy Capacity in India

Year Wise Wind Energy Capacity in India                                                               Note : The above data is gathered from various Govt. publications and sources, however the data may vary and author does not take any responsibility regarding the correctness of the data in whatsoever manner.

Also shown below is targets and achievements of power generation through Wind Power during last 3 years and current year (till 31.10.2013) :

Targets and achievements for Wind Power

Targets and achievements for Wind Power                                                            Note : The above data is gathered from various Govt. publications and sources, however the data may vary and author does not take any responsibility regarding the correctness of the data in whatsoever manner.

BENEFITS & INCENTIVES TO WIND ENERGY PROJECTS IN INDIA :

There are various fiscal benefits & incentives which the Wind Energy Sector enjoys :

Central Fiscal Incentives from Ministry of Finance

Direct Taxes :

  • Wind power projects shall have normal depreciation of 15%. In addition there is a provision of availing 20 % depreciation in the first year.
  • Exemption on Income Tax on earnings from the Project u/sec 80IA for 10 years.

Indirect Taxes :

  • Exemption of Excise Duty on Wind Energy Generator (WEG).
  • Concessional Custom Duty on specified WEG components

Apart from the above tax benefits the Government & Ministry of New & Renewable Energy  (MNRE) has also introduced the benefits of Generation Based Incentive (GBI). Some of the important  features of the GBI Scheme are :

  • Generation Based Incentive (GBI) can be claimed irrespective of the rate of depreciation opted by the Wind Power Producers (i.e. 15% + 20% (additional) on W.D.V. basis or 7.69% on S.L.M. basis) as provided under Income Tax Act 1961. Link
  • A GBI will be provided to wind electricity producers @ Re. 0.50 per unit of electricity fed into the grid for a period not less than 4 years and a maximum period of 10 years with a cap of Rs. 100 Lakhs per MW.
  • The total disbursement in a year will not exceed one fourth of the maximum limit of the incentive i.e. Rs. 25.00 Lakhs per MW during first four years. The GBI scheme will be  applicable for entire 12th plan period having a target of 15,000 MW
  • GBI would be available for wind turbines commissioned on or after 01.04.2012
  • All wind power producers wishing to avail Generation Based  Incentive (GBI) are required to registered with IREDA. The incentive is over and above the tariff that may be approved by the State Electricity Regulatory Commissions (SERC’s) in various states.
  • GBI would not be available to any wind power project selling power to third party, (viz. merchant power plants)

For more details of the GBI & official operational Guidelines for the GBI can be accessed  @ CLICK HERE

STATE-WISE WIND ENERGY TARIFFS IN INDIA :

Attached below is the chart of wind energy / power Feed-In-Tariffs across various states in India :

Note : The above data is gathered from various Govt. publications and sources, however the data may vary and author does not take any responsibility regarding the correctness of the data in whatsoever manner.

Note : The above data is gathered from various Govt. publications and sources, however the data may vary and author does not take any responsibility regarding the correctness of the data in whatsoever manner.

CONFUSED!  For whether to go for Windmill project or Solar power plant ??!!

confusedWell as a Renewable Soldier all what we should understand is :

“Chaman mein italaa-te rangaboo se baat banti hai,

Hum hi hum hai toh kya hum hai, tum hi tum ho toh kya tum ho “

 

Meanwhile till we meet next time enjoy this Kite Festival “Uttarayan” with Fafda, Undhiyu & jalebi !

Cheers !

Timeline_Cover_doNotRename71asd

www.urvishdave.com 

 

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About Urvish Dave

Urvish Dave is working as a Project Consultant in the Renewable Energy Arena with an expertise and keen focus on Solar Energy Sector viz. Rural Electrification, Off-Grid Solar Projects, Grid connected, Captive power plants, Renewable Energy Certificates (REC) Mechanism etc. for various Renewable Projects in India along with market intelligence pertaining to renewable energy sector. He holds the distinction of executing numerous Solar projects during the career path including EPC projects for Rural Electrification, Solar Grid Connected Projects, Off-Grid Projects etc. For Consultation and Turnkey Solutions in Renewable Energy Projects and energy efficient product's, visit www.urvishdave.com or write him at info@urvishdave.com
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7 Responses to Wind Energy Sector in India : Overview, State wise Wind Feed-In-Tariffs (FIT) in India along with Benefits & Incentives for Windmill Power Projects in India

  1. Dear Shri Urvish Bhai, Both sectors of the renewable energy, i.e. wind as well solar, suffer from insufficient and reliable data in terms of either wind speed or solar irradiation and that’s the principal reason for investors becoming wary of putting their money in these business ventures. Look at the petition filed by some of the solar developers including Reliance Power and Lanco in Rajasthan citing that the data on solar irradiation from MNRE were insufficient and faulty. And due to this, their projected power output has suffered a setback. With best wishes and regards Kamal Garg

  2. bhavin shah says:

    wonderful insight Urvish, keep posting.

    happy utrayan!!!

  3. Rajeev Kumar says:

    nice information Urvish,, do you know what benifits or any scheme for wind power in punjab …

    thanks

  4. Pingback: Total State wise Solar Power Installed under various Solar Policies in India along with deployment of Total Grid & Off-Grid Renewable Energy systems in India Till January 2014 ! | urvishdave

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