According to reports, pitching for restoration of accelerated depreciation scheme in the wind energy sector, turbine maker Suzlon said it will prove beneficial for the ailing renewable power industry.
Accelerated depreciation is basically increasing the depreciation on an asset which allows the asset owner to write off more of the value of the asset for some years of ownership thereby reducing taxable income.
“Accelerated depreciation will bring back the good growth in the wind sector and it will give huge benefits to small companies investing in the sector,” Tulsi Tanti Chairman and Managing Director of Suzlon Energy told PTI.
Wind power generation in the country in 2013 dropped to 1,500 MW due to removal of incentives given by the government, he said.
The wind power capacity added in 2011 was 3,300 MW and 1,700 MW in 2012.
“The year 2013 was the worst year for the whole wind industry and most of the global wind companies experienced negative growth,” Tanti said.
He added: “We are expecting the government to bring the accelerated depreciation back because of (its removal) the growth was negative.”
Tanti said, “We are expecting 30% growth in the Indian wind energy market in 2014 due to GBI (generation based incentives).”
GBI scheme was approved last year and it will provide an incentive of 50 paise per kWhr (kilowatt hour) of electricity generated by wind projects registered under the scheme.
Suzlon Energy has said it will launch a new offshore turbine that will help in yielding more power. The company will unveil its new offshore turbine REpower 6.2M152.
The new turbine features a rotor diameter of 152 metres. Bigger rotor increases energy yield by 20%.
Each 6.2M152 turbine with a rated power of 6.15 MW can supply electricity to around 4,000 homes. The 6.2M152 turbine will enter commercial production from 2015.