Indian renewable energy project developers continue to push with their plans to set up wind energy projects with some important financial incentives set to expire at the end of the current financial year.
One of India’s leading wind turbine manufacturer Inox Wind reported that it has received two orders of 50 MW capacity each to set up wind energy projects. The orders have come from two independent power producers that have not been named. The projects shall be set up in the states of Maharashtra and Madhya Pradesh.
One of the projects shall use the latest wind turbine launched by Inox Wind. The turbine has a rated capacity of 2 MW with rotor diameter of 113 meters. The turbine is reportedly among the most efficient turbines in India with one of the highest generation performance per kilowatt.
Inox Wind doubled its manufacturing capacity to 1.6 GW last year by expanding the facility in Madhya Pradesh. The company had announced last year that it will invest $750 million in the state of Gujarat to to set up 700 MW wind energy capacity. The company has pledged to manufacture wind turbines equivalent to 5 GW over the next 5 years.
According to sector analysts, and some developers themselves, annual capacity addition in the wind energy sector is expected to see its final bloom this financial year. The Generation-based Incentive, or GBI, is set to expire at the end of the current financial year, on 31 March 2017. Through this incentive developers get Rs 0.50 (US¢0.75) for every kilowatt hour of electricity generated.
Another incentive, accelerated depreciation shall be reduced from 80% to 40%. Through this incentive project developers can claim higher tax deductions on revenue generated from wind energy projects.