Government extends generation based incentive scheme for wind power

KOLKATA: The government has just allowed ministry of new and renewable energy's move to extended the scheme for continuation of generation based incentive for grid interactive wind power project for the 12th Plan period.

The objective is to broaden the investor base, to incentivize actual generation with the help of generation based incentive, and to facilitate entry of large independent power producers and foreign direct investors to the wind power sector.

Under the scheme a generation based incentive will be provided to wind electricity producers at the rate of 50 paise per unit of electricity fed into the grid for a period of at least four years and a maximum of 10 years with a cap of Rs 1 crore per mw. The total disbursement in a year will not exceed one fourth of the maximum limit of the incentive which is Rs 25 lakh per mw during the first four years. The scheme will be applicable for entire 12th Plan period with a total target of 15,000 mw.

Turbines commissioned on or after April 2012 will be eligible too. The scheme will cover grid connected generation from wind power projects set up for sale of electricity to grid at a tariff fixed by the State Electricity Regulatory Commissions or the state governments and also include group captive, but exclude third party sale - merchant power plants.