Wind energy sector wants accelerated depreciation scheme restored

August 1, 2013 by  
Filed under Green Energy News

The Indian Wind Power Association has appealed the Government to restore the accelerated depreciation scheme for the wind energy sector.

Association chairman K. Kasthoorirangaian told The Hindu that the accelerated depreciation scheme and generation-based incentives were withdrawn for the sector last April This year, Rs. 800 crore was allocated in the Union Budget for the generation-based incentive scheme. The wind energy sector expects the government to come out with the details of the scheme soon. The accelerated depreciation scheme should also be restored as it gave a boost to the small and medium-scale industries that invested in wind mills.

The country has nearly 19,500 MW of installed wind energy capacity, with Tamil Nadu alone accounting for nearly 7,100 MW. In 2011-2012, when both the schemes were in operation, 3,200 MW of installed capacity was added. However, the additional installations dropped to 1,700 MW last financial year. This year, so far, 264 MW has been added between April and June.

The country was looking at adding 3,000 MW of installed wind energy capacity every year during the XII Plan period. The accelerated depreciation scheme helped the small and medium-scale industries make higher investments in wind mills. In Tamil Nadu, nearly 50 per cent of the capacity was for captive use by industries. The small and medium-scale industries that had wind mills for captive use were able to bring down the power cost and improve their competitiveness in the international market, he said.

If both the schemes were implemented, the sector could see nearly 2,000 MW of installed capacity addition during the next eight months, he added.

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