Evaluation of generation based incentives scheme for wind power projects
Wind energy is the fastest growing renewable energy source in India. With an installed capacity of close to 28 GW, it constitutes about 61% of the country’s installed renewable power capacity. Commercial wind power projects in India are promoted through fiscal and promotional incentives. The main driving force for initial development of the wind sector has been the provision of 80% accelerated depreciation (AD). Later, to broaden the investment base through entry of large independent power producers (IPPs) and attract foreign direct investment (FDI), the Ministry of New and Renewable Energy (MNRE) introduced the Generation Based Incentive (GBI) scheme in December 2009. The objective of the scheme was to provide level playing field to IPPs and also promote increased generation and efficiency in installations. With the GBI scheme nearing its deadline of March 31, 2017, the Indian Renewable Energy Development Agency (IREDA) and MNRE have facilitated this study to evaluate the performance of the GBI scheme, in terms of meeting its objectives and targets, its impact on the wind power sector, and identifying and addressing any relevant issues.