One of India’s leading wind energy solutions provider Suzlon Energy expects a 30% growth in the annual capacity addition during the current financial year.
Talking to the media recently, Chairman of Suzlon Energy, Tulsi Tanti, said that a 30% increase in wind energy capacity addition is expected this financial year. Tanti expects that a record 4,300 MW capacity will be added between April 2016 and March 2017. This compares to 3,415 MW capacity added during the previous financial year.
The Ministry of New & Renewable Energy had set a capacity addition target of 2,400 MW in FY2015-16. India’s wind energy sector witnessed the largest-ever capacity addition in a financial year in 2015-16 partly due to the improved regulatory support and economic environment and partly due to the impending change in incentives program.
The ministry has set a target to add 4,000 MW capacity this financial year. Again, the likely expiry of some incentives for the wind energy sector could be the driving force for the jump in capacity addition.
The government is preparing for a lifeline for the sector once the incentives expire. Recently, the ministry issued a proposal to auction 1 GW of wind energy capacity across various states in India. According to the proposal, the ministry plans to auction at least 1 GW wind energy capacity. Project developers will be free to choose the site of project installation. The base tariff for auctions shall be equal to the wind energy tariff determined by the respective state electricity regulatory commission where the project is planned to be implemented.
India has set a target to achieve 60 GW operational wind energy capacity by March 2022. The installed wind energy capacity on 31 May 2016 was 26.9 GW.