Indian Wind Turbine Manufacturers Association has warned thatwind power capacity addition in the current year may not exceed 1,500 mw ifurgent steps are taken.
Abolition of ‘Accelerated Depreciation’ will hurt investments, especially in Tamil Nadu, which is basically a ‘AD market’ and where the operating environment is difficult.
Already, there are serious evacuation issues, and even where the evacuation infrastructure is stable, the grid is not made available to wind power producers — though they pay fixed transmission charges and ‘infrastructure development charges’. And now, the State distribution utility, Tangedco, wants the ‘banking facility’ removed.
On August 1, the Minister for New and Renewable Energy, Farooq Abdullah, is scheduled to meet representatives of the wind power industry.
'Accelerated Depreciation’ is gone, so is ‘Generation-Based Incentive’, and the sector is hoping to make a strong pitch for these benefits to be restored.