According to reports, the wind energy sector in India will see a turnaround in 2013, whether or not the incentives the industry players are fighting for are approved by the finance ministry. The industry expects to add 3000 MW in 2013, compared with 840 MW in the first half of this year, a sharp fall from 3100 MW in 2011.
“The Andhra Pradesh renewable energy policy is positive, Maharashtra continues to be good, and investments for abut 3000 MW can be expected for the next year,” said the chairman, Ramesh Kymal, Indian Wind Turbine Manufacturers’ Association.
Capacity additions to the wind energy sector fell sharply in 2012, and the industry blames policy issues – particularly the scrapping of incentives like the generation-based incentives scheme (GBI- where companies will get a financial incentive per unit of electricity they generate ), and the accelerated depreciation scheme (where the company gets to write off 80% of the project value in the first year as depreciation thereby reducing tax payout).
Most wind power developers have, for over a year now, held back investments and have been campaigning for bringing back the generation based incentives scheme stating that it is critical for the industry to survive. The union minister for new and renewable energy Farooq Abdullah too, said on Wednesday in Chennai that he was pitching to the finance ministry to bring back the incentives, and urged investors to join him in requesting the finance ministry to approve it.
However, it seems like the incentive is not a deal breaker for the industry.
“The GBI not coming does not mean it is the end of the road for me,” said the managing director of RRB Energy, Rakesh Bakshi. He said, when the country is suffering from power shortages, and the wind industry is a source of relief to the situation, the industry will thrive regardless of policy interventions.