According to reports, the Indian wind industry has urged the government to continue the wind-power generation based incentive (GBI) policy to boost private sector investment in wind power sector, a top official said.
“The most visible power today is the wind power with 17,000 mega watt (mw) installed in the country in the past 23 years (1989-2012), and 95 per cent of which is installed by the private sector, pumping in Rs 85,000 crore,” DV Giri, secretary general, Indian Wind Turbine Manufacturing Association said on the sidelines of renewable energy 2012 wind conference on ‘Propelling the power of wind energy’ being held in Pune on Tuesday.
“An additional 25,000 mw wind power project will be installed by the private sector in the next five years in the country with an investment of Rs 1,55,000 crore,” he said. But to achieve this, the government should continue the GBI policy, he said. He said according to industry data, it costs on an average Rs 5 crore to produce one mw of wind power.
Giri said the government has scrapped the accelerated depreciation policy, a key driver of wind power investment, in March last year, and introduced GBI policy to achieve 4,000 mw.
“For every power unit, the producer gets 50 paise with the upper cap of Rs 62.5 lakh per mw. The industry has already installed 1,500 mw capacity up to 2012 plan, and we have urged the government to continue this incentive programme in the 12th plan period (up to 2017),” Giri said. However, with no response from the government, he said investor in wind energy has been shying away from further investment.
“Also, the state utilities, who are mandated to buy the renewable energy certificate (REC) to meet the renewable portfolio obligation, are not penalised if they do not buy them,” Giri said. The REC market, and in turn investment in wind energy, will not grow if the power utilities are not penalised, he said.
Ashish Sethia, head of research in India at Bloomberg New Energy Finance, said investments in renewable, especially in wind energy was on the decline due to uncertainties in government policy on AD and GBI.
“The total investment in renewable energy investment in India decreased to $4.6 billion in calendar year 2011 from a high of $5 billion clocked in calendar year 2010,” Sethia said.