With huge energy insecurity, non-conventional energy sources are being tapped to the fullest. As a result demand for wind energy is set to rise exponentially in India within the next 20 years.
A recent study done jointly by the Global Wind Energy Council and the Indian Wind Turbine Manufacturers Association indicates that if the government provides the right incentives for the sector, wind farm power could account for 24 per cent of India’s total power generation capacity by 2030.
Such a scenario would open tremendous business potential for wind power equipment manufacturing firms such as Larsen & Toubro and Bharat Forge. Besides, Bharat Heavy Electricals (BHEL), another joint ventures company known as L&T-MHI between L&T and Mitsubishi Heavy Industries will join the fray.
Major players in the wind turbine and equipment manufacturing arena, such as Suzlon Energy (SEL) and Danish company Vestas Wind Systems are gearing up to take the challenge up. SEL has nearly nine per cent of global market share in wind turbine sales.
The Ministry of New and Renewable Energy (MNRE) has presented plans to be implemented via state nodal agencies for water pumping windmills, hybrid systems and small aero-generators. The MNRE will meet up to half the cost of water pumping windmills, depending on the design of the windmill.
The MNRE has also proposed generation-based incentives for grid-connected renewable wind turbines generation. The investment in the sector is designed to increase the investor base, and companies are not permitted to utilize the scheme for less than four years and more than 10 years.
Wind power electricity manufacturers will obtain approximately 47 paise cent per unit of electricity fed into the grid. This is a considerable subsidy, as wind power averages about Rs. 2.80 per unit in India. Wind turbines commissioned under the GBI scheme or prior to March 31, 2012, are eligible for the subsidy.