Leading components supplier to the wind industry, LM Wind Power, today requested the Indian Government, Ministry of New and Renewable Energy, to re-instate the Generation Based Incentive (GBI) and Accelerated Depreciation Benefits (AD) for the wind energy sector.
These measures encourage long-term investment in the wind energy industry which has become one of the key drivers of economic, environmental and social progress in India as a result of forward thinking policy and government support.
As a member of the Indian Wind Turbine Manufacturers Association (IWTMA) since its inception, LM Wind Power has also in the past been involved in making representation to various Government agencies on this issue. LM Wind Power is confident of market growth if favorable policies like the GBI and AD are reinstated.
India has played a leading role in renewable energy and the cost of wind energy in particular, has decreased significantly as a result of government incentives to the industry which has allowed companies like LM Wind Power to introduce new, more advanced rotors.
In fact, the first, most advanced 2 megawatt (MW) turbines were built in India with LM Wind Power blades supplied to important international customers in the sector. The wind industry has created jobs, brought inward investment and now exports from India by setting up production, research and development facilities and hiring employees who develop technical skills that will also be useful in other industries. LM Wind Power has doubled its blade manufacturing capacity in the last two years. These jobs could be at risk with such an uncertain future in the Indian wind energy market.
“Incentives enable us to invest in new technology for the long term future. We continue to reduce the cost of wind energy and move towards parity with hydrocarbon and other conventional energy sources,” said LM Wind Power, CEO, Leo Schot. He continued, “It is imperative that policy decisions in the Indian energy sector are expedited swiftly and, if these measures are not implemented, that other incentives should be initiated to maintain the positive momentum and growth in the market. Wind energy is a key agent in mitigating carbon emissions and fighting global warming while providing clean and reliable energy to a growing population. We sincerely request the Indian Government to prioritize support to the further development of a strong Indian wind industry in order to achieve long term economic gains and environmental benefits,” said Mr. Schot.