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

India Plans to Revive Wind-Farm Tax Break, Raise Subsidy

India Plans to Revive Wind-Farm Tax Break, Raise Subsidy

India plans to revive tax breaks for wind farms after the expiry of earlier incentive programs led to a 47 percent slump in installations, according to two government officials with direct knowledge of the matter.

The Ministry of New and Renewable Energy proposed to resume a break for depreciation on wind farms and boost a subsidy for alternative generation, the officials said, asking not to be identified because the proposal is awaiting Cabinet approval.

Investment in the wind industry sputtered after the two incentives expired on March 31, 2012, stalling turbine orders for manufacturers such as Suzlon Energy Ltd. (SUEL) and Gamesa Corp. (GAM) Tecnologica SA. The slump in installations last financial year toppled India from its place as the world’s third-biggest market for the industry, according to data compiled by Bloomberg.

Investors may claim the tax break and subsidy retroactively from April 1, 2012, should they be revived, the officials said.

Under the program, wind-farm owners could claim accelerated depreciation on 80 percent of the cost of equipment, allowing them to write off investments quickly. Alternatively, they would be allowed 500 rupees ($8.37) per megawatt-hour of electricity fed into the grid under the generation-based incentive program.

Accelerated depreciation drove a third to half of yearly installations, according to the ministry. Minister Farooq Abdullah blamed the incentive in 2011 for prompting investors to put up wind farms for tax breaks rather than generating power.

The ministry decided to revive it after comparing wind farm output based on data from the Central Electricity Authority and finding projects operated at similar efficiencies, or plant load factors of about 21 percent, regardless of the incentive they chose, according to the officials.

The proposal also supports raising the amount of the generation-based subsidy and its cap of 6.2 million rupees per megawatt, the officials said, declining to say by how much.

Copyright 2013 Bloomberg

Lead image: Wind turbines via Shutterstock



Greenpeace Raises Pressure on Internet Companies to Go Renewable

Andrew Burger, Contributor For at least four years, Greenpeace has been raising public awareness and putting pressure on the world's largest data and cloud computing center providers to fuel their operations with clean, renewable power. In May, Gree...
A biogas plant concept from Weltec Biopower

Europe Versus Renewable Energy?

Tildy Bayar, Contributor Wednesday morning’s 'Regulation and the Marketplace' panel discussion at POWER-GEN Europe in Amsterdam got off to a lively start with a presentation from Randy Mott, president of Polish biogas- and geothermal-bas...
Uzbekistan flag and map

Uzbekistan’s Ambitious Wind Power Target Signals New Energy Politics

Linas Jegelevicius, International Correspondent After rolling out its renewable energy strategy through 2019 in April, the Central Asian Republic of Uzbekistan has set its sights on ambitious goals: Build three 100-MW solar power plants and generate more than 1 trillion...
Wind turbines dusk

India's Solar Embrace Is Leaving Wind Power in the Shade

Anindya Upadhyay, Bloomberg

India is set to add more solar capacity than wind power for the first time as Prime Minister Narendra Modi looks to harness the sun’s rays to curb energy shortages.


Volume 18, Issue 3


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



Bankability and Support Mechanisms for Renewable Energy Projects

Setting appropriate legal and regulatory frameworks is essential for the...

CRGM - Online Training on Grid Integration of Renewable Energy

The training is useful for persons who would like to learn more about me...

Applying Renewable Energy - Online Training

RENAC Online offers a selection of courses on a wide variety of renewabl...


Meteorological Technology International Magazine - SENSORS AND SENS...

Over the past 10 years, these sensing technologies have spread tre...

SunEdison Expands Residential Market Offerings with New PPA, Sales ...

SunEdison has largely focussed on the commercial and utility-scale solar...

Deadline for Inclusion in Solar Power World's Top Solar Contractors...

UPDATE: The official deadline for the Solar Power World T...


Tweet the Editors! @megcichon @jennrunyon


Renewable Energy: Subscribe Now

Solar Energy: Subscribe Now

Wind Energy: Subscribe Now

Geothermal Energy: Subscribe Now

Bioenergy: Subscribe Now