Financial incentives to wind energy sector

Financial incentives to wind energy sectorAfter withdrawal of Accelerated Depreciation (AD) and Generation-Based Incentive (GBI) with effective from April 01, 2012, the wind power installation in the country has shown a decline. In the approved 12th Plan document, the Planning Commission has suggested the creation of a wind mission so that all the related issues for speedy exploitation of wind potential of the country can be addressed.The National Action Plan on Climate Change (NAPCC) suggests that from 2009-10, the national renewable standard may be set at 5 per cent of total purchase of grid electricity, which should increase by 1 per cent each year for the next 10 years. As per Central Electricity Authority’s estimates, the share of renewable power in total electricity mix in April-August 2012 was about 7 per cent, which was broadly in-line with the suggestions for the share of renewable power in the electricity mix made in NAPCC.The Forum of Regulators (A forum comprising of chairperson of the central electricity regulatory commission and chairpersons of the state electricity regulatory commissions) has approved a model regulation for SERCs on RPO and its compliance, wherein there is a provision for levy of compliance charge, in event of obligated entities not fulfilling the renewable purchase obligation.