The wind energy sector has attracted foreign direct investment of Rs 1,510 crore over the past three years.
In the renewable energy sector, wind energy has emerged as the fastest growing category, the Minister of New and Renewable Energy, Dr Farooq Abdullah, informed the Lok Sabha on Friday.
“An investment of about Rs 1,510 crore has been received as FDI in the wind energy sector during the last three years and the current year (up to June 2011),” he said. The Minister was responding to a query on whether the FDI in wind energy is nominal.
The Government allows 100 per cent FDI in the renewable energy generation and distribution projects including wind energy, subject to provisions of the Electricity Act 2003.
A total wind power capacity of 14,723 MW has already been installed up to July 2011 in various States. Of this 42 per cent capacity has been installed in Tamil Nadu.
A target of 9,000 MW wind power capacity addition has been fixed for the 11{+t}{+h} Five-Year Plan. Out of this, 7,629 MW capacity has already been set up and the balance is expected in the remaining period of the current financial year.
Besides existing policy enablers under the Electricity Act, the other key initiatives taken in the recent past to attract foreign investment in wind energy include introduction of a generation-based incentive scheme for wind power projects which do not avail themselves of accelerated growth of depreciation.