Generation based incentives for wind power

In July 2008, the Ministry of New and Renewable Energy (MNRE) launched a new generation-based incentive scheme for wind power production. The scheme is designed to promote investment in new and large independent wind power producers, to fulfil a target of securing 10 500 MW of new wind power capacity by 2012.To be eligible, new wind power projects must have at least 5 MW of grid-connected capacity, and must be installed at sites validated by the Centre for Wind Energy Technology. Investors in eligible projects will receive an INR 0.5/kWh payment for ten years, over and above the tariff determined for wind power by the relevant regulatory authorities.The tariff does not apply to investors setting up capacities for captive consumption, third party sale, merchant plants, and to those benefiting from depreciation under the Income Tax Act.The payment will be funded by the MNRE, disbursed through the Renewable Energy Development Agency (IREDA) on a half-yearly basis.

Want to know more about this policy ? Learn more