Global woes of offshore wind projects will not stall India’s plans: T.E.R.I’s Shirish Garud
But the global woes may not impact the government’s plans, says Shirish S Garud, Consultant, T.E.R.I (The Energy and Research Institute). In an interaction with ET Digital, he explains how the wind energy industry has gradually evolved in the country and the trajectory it is taking now. Edited excerpt:
ET: How has wind energy development evolved over the years?
SG: The wind energy development in India started in the early 1980s when the government asked PSUs like BHEL to invest in these projects. In 1993, the government came out with a policy on the tariff of wind power plants that are to be connected to the grid. This was a proactive one that gave some fixed tariff and annual increment in this tariff.
This policy continued till 2003, during which the wind energy sector grew very fast. Private players came into the picture — like Suzlon and RRB Wind who started manufacturing wind machines in India. It was, in fact, much cheaper than solar at about Rs 6 per kilowatt compared to Rs 17-18 per kilowatt for solar.
There was 100% depreciation in income tax for industries and individuals in this sector. So many industries, as well as individuals like film stars, cricketers, started investing in this segment. These developments happened mostly in windy states of Tamil Nadu, Karnataka, Maharashtra and to a certain extent in Andhra Pradesh, Telangana. But the tax depreciation was later reduced to 80%; it has been reduced further now.
ET: So how is the sector placed now?
SG: India has about 46 gigawatt of wind power
