According to reports, India may install more wind capacity than the US this year for the first time as a tax-benefit window extending to 2015 prompts US developers to delay setting up new projects.
India is forecast to put up 2,050 megawatts of wind capacity in 2013, compared with the 2,000 MW expected in the US, according to the latest figures from Bloomberg New Energy Finance due to be published next week.
“The decline in the US is mainly due to the complacency of the project developers, which can claim federal tax benefits through 2015,” said Shantanu Jaiswal, a New Delhi-based BNEF wind analyst.
While all major wind markets, including China, are expected to slow this year, the US is set to experience the sharpest decline with annual installations plunging 85%. “India’s lead could be short-lived with US installations expected to surge again starting 2014,” Jaiswal said.
“India has installed 19,662 MW of wind power, according to the ministry of new and renewable energy, about one-fifth of the nation’s estimated potential,” he said.
There exists a substantial upside potential for Indian wind installations in the coming years, he said.
The country’s 10 largest developers, including Mytrah Energy Ltd, Green Infra Ltd and Goldman Sachs Group Inc-backed ReNew Wind Power Pvt. Ltd, have plans to put up 15,000 MW of capacity in the next 10 years, driven by increasing demand for electricity and wind power prices that are competitive with new coal plants.