The wind power capacity installed during 2018-19 was 1480 MW which is less as compared to previous years, i.e. 1865 MW in 2017-18 and 5502 MW in 2016-17. The less capacity addition is due to the transition of wind power sector from feed in tariff regime to transparent competitive bidding mechanism and issues relating to land acquisition in certain states.
Now, the bidding process has been regularized and the commissioning of projects, awarded through competitive bids has started, the capacity addition has also been accelerated.
The Government is promoting capacity addition of wind power projects through private sector investment by providing various fiscal and financial incentives such as Accelerated Depreciation benefit; concessional custom duty exemption on certain components of wind electric generators. Besides, Generation Based Incentive (GBI) Scheme was available for the wind projects commissioned before 31 March 2017.
In addition to fiscal and other incentives as stated above, technical support including wind resource assessment and identification of potential sites is being provided through the National Institute of Wind Energy, Chennai.
The Government has issued Guidelines for Tariff Based Competitive Bidding Process for Procurement of Power from grid connected wind and solar power projects. The wind and solar projects are awarded at tariff discovered after transparent e-reverse auctions as per the guidelines. The lowest tariff received for wind and solar power are Rs. 2.43 per unit and 2.44 per unit respectively.
In order to facilitate inter-state sale of power through wind and solar, orders have been issued to waive inter-state transmission charges and losses for inter-state sale of wind and solar power projects to be commissioned by March, 2022. Further, the wind and solar power projects are accorded ‘must run’ status.