INDIA UPS WIND INCENTIVE

Government launches incentive scheme for wind energy projects
December 18, 2009 (Business Standard)

"The Ministry of New and Renewable Energy (MNRE) has announced an incentive of 50 paise per unit of wind power fed by independent power producers into the grid [for plants with a maximum installed capacity of 4,000 Mw]…

"The generation-based incentive (GBI) is aimed at attracting investment in the wind energy sector and increasing the quantum of grid-interactive renewable power…The incentive has been capped at Rs 62 lakh per Mw and the total yearly disbursement will not exceed Rs 15.5 lakh per Mw for the first four years. The sops, to be continued till the end of the current Plan period (2007-12), will be provided to companies through the Indian Renewable Energy Development Agency (IREDA), the financial development agency for the renewable energy sector…"

click to enlarge

"The scheme will allow the investors, apart from getting the tariff determined by the state regulatory commissions, also get an incentive of 50 paise per unit of electricity for a period of 10 years, provided they do not claim the benefit of…80 per cent accelerated depreciation under the Income Tax Act…

"The domestic industry has welcomed the incentive scheme…Share price of Suzlon Energy, a major equipment supplier for wind energy, at the Bombay Stock Exchange today closed at Rs 82.9, up 2.47 per cent…"

click to enlarge

"Last year, the ministry had announced a similar scheme to provide generation-based incentive to grid-interactive solar power projects of up to a maximum capacity of 50 Mw.

"Wind energy accounts for over 70 per cent of the total 15,540 Mw of installed renewable energy generation capacity in India. The country is likely to spend over Rs 1,00,000 crore in setting up renewable energy generation capacity by the end of the current Plan period…"