The wind power sector is awaiting the Union Cabinet nod for generation-based incentive (GBI), a move that will accelerate the implementation of projects.
Finance Minister P. Chidambaram had announced that the wind power units will be extended a generation-based incentive. The file is under consideration by the Prime Minister and needs Cabinet approval, according to Ramesh Kymal, Chairman, Renewable Energy Council, CII-Shorabji Godrej Green Business Centre.
Speaking on the sidelines of the 12th Green Power International Conference and Exposition on Renewable Energy, 2013, hosted by CII, he said the Government was earlier extending generation based incentive and accelerated depreciation facility to wind farms. These had made it attractive to take up wind farms.
But both of these have been withdrawn. However, during the Budget it was announced that GBI will be extended to wind farms. The industry is awaiting this as it would provide an additional 50 paise per unit to the generator in addition to the tariffs.
“The country has potential to set up about 6 lakh MW of wind power. The current installed capacity is 18,000 MW. In 2011, the country added 2300 MW of wind power capacity. This had come down to about 1700 MW in 2012 and is likely to be in the same range this year. But next year it could go up to 3000 MW if promised incentives are extended,” he said.
“The XI Plan envisages a capacity addition of about 15,000 MW of wind power. If this comes through, we will be able to save about Rs 50,000 crores worth of foreign exchange by cutting down import bill,” he said.
Grid Parity
Earlier, experts from renewable energy sector stated that wind and hydel projects have already achieved grid parity with thermal power projects. Solar projects are some way away. Though there is considerable interest in setting up solar projects, this is not translating into actual implementation, they felt.
Richard Hyde, British Deputy High Commissioner, Hyderabad, said innovative Government policies will play a key role in improving energy, food, employment and resource security while ensuring strong business climate for all stakeholders.
Wind turbine manufacturer Gamesa Group of Spain is upbeat on business prospects in India in spite of the current implementation hurdles, according to Ramesh Kymal, Chairman and Managing Director of Gamesa.
He told Business Line , “Gamesa is executing an order book of about 650 MW in 2013 as against 450 MW in 2012. We expect this to go up to 850 MW in 2014.”