Wind power sector awaits nod for generation based incentive
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 But both of these have been withdrawn.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.