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  • 01 January, 1970

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Government concessions to promote Wind Energy Projects

Government concessions to promote Wind Energy Projects

Present Status Of Wind Energy Projects

  • More than 70 percent of the equipment is manufactured in India.

About wind resource

  1. The wind resource is highly site specific and
  2. It is commercially exploitable potential is available only in seven States i.e. Andhra Pradesh, Gujarat, Tamil Nadu, Madhya Pradesh, Maharashtra, Rajasthan and Karnataka.
  3. Wind power projects are set up by private developers based on techno-economic viability of the project.

The Government has taken several steps to promote renewable energy, including wind energy, in the country. These include:

    • Permitting Foreign Direct Investment (FDI) up to 100 percent under the automatic route,
    • Waiver of Inter State Transmission System (ISTS) charges for inter-state sale of solar and wind power for projects to be commissioned by 30th June 2025,
    • Declaration of trajectory for Renewable Purchase Obligation (RPO) up to the year 2022,
    • Setting up of Ultra Mega Renewable Energy Parks to provide land and transmission to RE developers on a plug and play basis,
    • Laying of new transmission lines and creating new sub-station capacity for evacuation of renewable power,
    • Setting up of Project Development Cell for attracting and facilitating investments,
    • Standard Bidding Guidelines for tariff based competitive bidding process for procurement of Power from Grid Connected Solar PV and Wind Projects.
    • Government has issued orders that power shall be dispatched against Letter of Credit (LC) or advance payment to ensure timely payment by distribution licensees to RE generators.
    • Conducting skill development programmes to create a pool of skilled manpower for implementation, operation and maintenance of RE projects.

In addition to the above, the following steps have been taken specifically for promoting wind energy:

    • Concessional custom duty exemption on certain components required for manufacturing of wind electric generators.
    • Generation Based Incentive (GBI) is being provided to the wind projects commissioned on or before 31 March 2017.
    • Technical support including wind resource assessment and identification of potential sites through the National Institute of Wind Energy, Chennai.

About wind resource

  1. The wind resource is highly site specific and
  2. It is commercially exploitable potential is available only in seven States i.e. Andhra Pradesh, Gujarat, Tamil Nadu, Madhya Pradesh, Maharashtra, Rajasthan and Karnataka.
  3. Wind power projects are set up by private developers based on techno-economic viability of the project.

Why in News

  • Tenders to set up wind power projects of a cumulative capacity of 20,000 MW have been invited by various central and state agencies in the country, out of which 14,332 MW projects have been awarded.
  • A cumulative of 39,486 MW capacity of wind power projects have been installed in the country, as on 30.06.2021

The present concessions are in line with the government goals to achieve 175GW Renewable Energy Production within which, 60GW is from wind power alone.

Source: PIB

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