The government of India has approved the generation-based incentive for wind power projects as per reports.
Government of India will provide an incentive of 50 paise per kWhr subject to a total of Rs 1 crore per MW of capacity.
The incentive of Rs 1 crore can be drawn in not fewer than four years and not more than 10.
The scheme will take effect retrospectively.
No decision has been taken on the issue of accelerated depreciation.
Under the scheme, investors enjoyed benefit of upto 80 per cent of the project cost for devices like wind mills and solar cookers. An investor availing AD (Accelerated depreciation benefits) was not allowed incentive under the GBI scheme. Under GBI (Generation-based incentives), an incentive of 50 paise is provided for every unit of electricity generated.
This brings some cheer for the industry that has seen many incentives being removed. In addition, the new forecast rule had made matters worse which asked wind producers to give forecast or face penalties.
As per the forecast rule, wind power generators have to forecast their generation of the next day, every 15 minute with provision for penalties if the actual generation is 30 per cent more or less over the submitted forecast. The rule is applicable only for wind turbines installed after May 2010.
The Wind Independent Power Producers Association had moved the Delhi High court against the CERC (Central Electricity Regulatory Commission) over the forecasting order.
Forecasting of wind generation helps to stabilize the grid.