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Generation-based incentive needed to drive wind power in India

According to reports, generation-based incentives will be the driver for independent power producers (IPP) in the wind power sector, said a top industry official Friday.

“Generation based incentives need to be restored for wind power producers. That will be driver for IPPs in the sector,” Indian Wind Turbine Manufacturers Association (IWTMA) chairman Ramesh Kymal told reporters here.

At least projects up to 5 MW should be given the facility of accelerated depreciation on their windmills if they do not avail generation-based incentives, said Kymal, who is also the chairman of Gamesa, a manufacturer of wind turbines.

However, Kymal and other industry officials were non-committal when asked whether the generation-based incentives could also be linked to the local content in a wind mill.

Wind power producers were given an incentive of 50 paise per unit generated subject to a cap of Rs.62.5 lakh per MW of installed capacity. The scheme ended March 31 this year.

According to G.M.Pillai, founder director general of World Institute of Sustainable Energy, the wind power potential in Tamil Nadu alone is around 35,000 MW and the state has the potential to export power.

Queried about the movement of different Indian states towards solar power, Pillai said wind power is cheaper than solar.

Meanwhile, in order to deliberate the issues facing the wind power sector, the IWTMA, in association with World Institute of Sustainable Energy, Pune, and the Global Wind Energy Council (GWEC), is organising Wind Power India 2012, a three-day exhibition and conference Nov 28-30 here.

According to D.V.Giri, secretary general of IWTMA, the event will be inaugurated by Union Minister of New and Renewable Energy Farooq Abdullah.

He said more than 150 exhibitors, including over 25 from overseas, will be showcasing their products.

According to ITWMA, India’s cumulative installed capacity of wind power is 18 GW (giga watts).

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