India is blessed with various renewable energy sources. Wind energy is a prominent renewable energy source in India. Ministry of New and Renewable Energy (MNRE) has already estimated 103 GW* of wind energy potential.
The Government of India is looking at renewable energy as a way to achieve energy security and to curb greenhouse gas (GHG) emissions happening from the electricity sector. Therefore, renewable energy development is high on government agenda. Recently, India set 60 GW of wind capacity addition target by 2022.
Wind energy has proven track record in India with 23,762 MW of installed capacity by the end of last financial year (31st March 2015). This five digit number has achieved from just 1,667 MW of installed capacity in the year 2002. A major portion of capacity addition happened in 2011-12 with 3,197 MW of capacity addition in a single year. Tax benefits such as Accelerated Depreciation and Generation Based Incentive (GBI) are the growth enablers for wind energy sector in India.
Wind energy distribution is not uniform across all states in India. Southern and western states have maximum wind capacity installed due to highest wind density and velocity. Tamil Nadu is leading state in terms of wind installations with 33% share in overall wind capacity installed in the country. Wind power plants in Tamil Nadu have generated 82 billion units cumulatively till the year 2013-14. Following graphs shows top five states in India with highest wind electricity generation:
The private sector investment in the wind energy sector is booming with these target set by the government. In addition, Credit Rating Information Services of India Limited (CRISIL) mentioned in its report that the wind energy sector can attract Rs. 1 lakh crore of investment by 2020. This is assuming falling cost of wind energy compared to the grid tariffs. CRISIL expects 4 GW of wind energy capacity addition every year over the next five years.
The Government of India has assured to continue accelerated depreciation benefits and generation-based incentive (GBI) to wind energy sector to fuel the overall growth of the sector. In addition, the National Wind Energy Mission is in pipeline to accelerate the wind energy sector with more emphasis on offshore wind energy.
* at 80 m hub height
Data Source: CEA