India Call for national policy on wind energy

Indian Wind Turbine Manufacturers’ Association (IWTMA) has called for a generation-based incentive policy to attract foreign direct investment (FDI) into the nascent wind energy sector. Addressing a press conference here on Monday, D. V. Giri, Chairman of the association, said any generation-based incentive should have no ceiling on capacity. At present, the Central Government has adopted a generation-based incentive model on a pilot basis for wind energy projects up to 49 MW. Mr. Giri felt that this cap on capacity had to go if foreign direct investment had to come into this space in a bigger way. He said that the utility of wind energy could not be underestimated in the context of the finite nature of fossil fuels, which were depleting fast, and the galloping oil prices. In the Indian context, wind energy, more often than not, was understood as an avenue for tax planning by profit- making corporates. The depreciation benefits had lured all and sundry into wind power production. Mr. Giri felt that it was time that the government came out with a comprehensive policy that encouraged serious IPPs (independent power producers) into the wind energy sector. To make it happen, a long-term bankable wind energy policy was a must, he pointed out.

The chairman also said that there was a sizable percentage of non-performing plants among the existing wind farm projects. These could be made functional by upgrading the machines. Alternatively, Mr. Giri felt that the land housing the non-performing assets could be reclaimed to put up new generating units.

Mr. Giri felt that there was an urged need for a national policy for wind energy, which should address assorted issues such as tariff, renewable purchase specifications (which provided for the percentage of wind energy in the basket of power purchased by the State grids) and the like.

Source: http://www.thehindu.com/2008/08/13/stories/2008081351811600.htm