Gujarat
Power Project
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Gujarat Power Project

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The wind energy policies in these states are summarized here:

Fiscal and financial incentives
The Government has introduced the following financial initiatives to improve financial viability of wind energy projects and encourage private investment in the sector.

10 year income tax holiday for wind power generation projects

Guaranteed price through a specified renewable portfolio standard in some states, as decided by the state electricity regulator by way of power purchase agreements

80% accelerated depreciation over one or two years

Some states have also announced special tariffs, ranging from Rs 3-4 per kWh, with a national average of around Rs 3.50 per kWh

Setting up of the Indian Renewable Energy Development Agency (IREDA), the premier finance agency of the Government of India to provide soft loans for renewable energy projects, particularly for demonstration and private sector projects

Concession on import duty on specified wind turbine parts

Excise duty relief on certain components

Wheeling, banking and third party sales, buy-back facility by states

Reduced wheeling charges as compared to conventional energy


Other initiatives
Other than the financial initiatives, the government set up the Centre for Wind Energy Technology (C-WET) to map wind energy potential. The C-WET has set up more than 1,000 wind monitoring and wind mapping centers across 25 states. In June 2008, the MNRE announced a national generation-based incentive scheme for grid connected wind power projects under 49 MW, providing an incentive of 0.5 rupees per KWh (0.7 Euro cents) in addition to the existing state incentives. Investors which, because of their small size or lack of tax liability cannot draw any benefit from accelerated depreciation under the Income Tax Act can opt for this alternative incentive instead.

Global shift towards clean energy
The Kyoto Protocol, in force since 2005 sets a binding target for industrialised countries to reduce their emissions of greenhouse gases by an initial aggregate of 5.2% against 1990 levels over the period 2008 – 2012. The Kyoto Protocol has adopted a flexible market based approach for the reduction of greenhouse gases. One of the mechanisms introduced by the Kyoto Protocol is the clean development mechanism (CDM) which incentivises countries for reduction of emission by allowing trade of carbon emission reduction credit.

A wide variety of projects have been launched under the CDM, including those involving renewable energy, energy efficiency, fuel switching, landfill gases, better management of methane from animal waste, the control of coal mine methane and controlling emissions of certain industrial gases, including HFCs and N2O. India signed and ratified the Kyoto Protocol in August 2002, and the possibility to register projects under the Protocol’s Clean Development Mechanism (CDM) has provided a further incentive to wind energy development in India. The final approving authority for CDM projects is the Ministry of Environment and Forests, following a four stage process at national level. Indian wind energy projects have taken a proactive approach to maximize the benefit from this initiative with 301 Indian wind projects were registered with the CDM Executive Board, accounting for 5,659 MW as of 1 August 2009 (second only to China).

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