The World's #1 Renewable Energy Network for News, Information, and Companies.

India Budget Revives Wind Subsidy, Introduces Low-Cost Loans

India Budget Revives Wind Subsidy, Introduces Low-Cost Loans

India today reintroduced a subsidy for wind farms and announced low-cost loans for clean energy generators in its budget for the year starting April 1.

The South Asian nation will reinstate generation-based incentives for wind energy, Finance Minister Palaniappan Chidambaram said in his budget speech to Parliament. The government will allocate 8 billion rupees ($147 million) to the renewable energy ministry for the subsidy, he said.

The withdrawal of the incentive contributed to a 50 percent drop in capacity additions this fiscal year, said Ramesh Kymal, chairman at the India unit of Gamesa Corp. Tecnologica SA (GAM),Europe’s second-biggest wind-turbine maker. The benefit expired in March last year. Annual installations in the world’s third- biggest wind market more than doubled from 2009 to 2011 helped by the subsidy.

Reinstatement of the generation-based incentive will help add at least 400 megawatts of wind capacity in India in the year ending March 2014, said Ashish Sethia, country manager for Bloomberg New Energy Finance in India.

The Indian government will also provide companies that generate renewable energy with low-cost loans for the next five years from the National Clean Energy Fund, Chidambaram said.

“Unlike coal or gas power plants, a majority of the cost for renewable energy projects is in the form of initial capital expenditure,” BNEF’s Sethia said. “Projects that will be able to access low-cost debt can see a significant boost in their equity returns.”

India plans to add 3,000 megawatts of capacity from wind, small hydro, biomass, industrial waste-to-energy and solar power plants in the year to March 2014, according to budget documents.

Copyright 2013 Bloomberg

Lead image: Wind turbines via Shutterstock


Regional News from the July/August 2015 Digital Edition of Renewable Energy World

Renewable Energy World Editors EcoFasten Solar announced that it launched a new mounting "Rock-It System" that it would be displaying during Intersolar. Product compliance was determined through testing per UL Subject 2703, which reviews integ...

With 1.6 GW of Wind Capacity Installed in Q2, American Wind Power Continues To Ramp Up in 2015

American Wind Energy Association With 1,661 megawatts (MW) of newly installed wind turbines coming online during the second quarter of 2015 and more than 13,600 MW under construction, American wind power continues to increase its contribution to the U.S. ...

Some Hope for US Renewable Energy Tax Credits As Extension Bill Passes Committee

Vince Font In a lopsided 23-3 vote, the U.S. Senate Finance Committee voted yesterday to extend a number of renewable energy production tax credits through the end of 2016. The vote allows developers of wind, geothermal, biomass, lan...

How Solar Energy Zones and Easy Permitting Helped Create 3-cent Solar

Susan Kraemer, Correspondent Warren Buffet's utility NV Energy has signed the lowest price contract for solar ever, at just US $0.0384 for First Solar’s 100-MW Playa Solar project, beating even its own record low price of $0.046 cents for SunPower's 1...


Volume 18, Issue 4


To register for our free
e-Newsletters, subscribe today:



Doing Business in South Africa – in partnership with GWEC, the Glob...

Wind Energy in South Africa has been expanding dramatically, growing fro...

StartUp Green

AREI, American Renewable Energy Institute, in partnership with ...

AWEA Offshore WINDPOWER 2015 Conference & Exhibition

Building Up and Trending Forward With the construction of the Block Isla...


Koch Professor drops his Koch title, still makes same errors plus s...

The Koch Professor’s title isn’t the only thing that’s...

Fact Check: AWEA represents American wind power

The American Wind Energy Association (AWEA) is proud of its members for ...

SAP for Utilities Blog

The Eventful Group produces the annual SAP for Utilites Conference ...


Tweet the Editors! @megcichon @jennrunyon


Renewable Energy: Subscribe Now

Solar Energy: Subscribe Now

Wind Energy: Subscribe Now

Geothermal Energy: Subscribe Now

Bioenergy: Subscribe Now