Lok Sabha Question No. 1026 (UNSTARRED), answered on 2019-06-27
Subject: Capacity Addition in Wind Energy
Ministry: NEW AND RENEWABLE ENERGY
Asked by: Ramya  Haridas

## GOVERNMENT OF INDIA MINISTRY OF NEW AND RENEWABLE ENRGY

## LOK SABHA UNSTARRED QUESTION NO. 1026

TO BE ANSWERED ON 27.06.2019

## CAPACITY ADDITION IN WIND ENERGY

## 1026. SHRIMATI RAMYA HARIDAS

Will the Minister of NEW AND RENEWABLE ENERGY be pleased to state:

(a) whether there is meagre wind capacity addition this year and if so, the details thereof and the reasons therefor;

(b) whether the Government proposes to auction 4500 MW wind projects to upscale the wind capacity addition in the country and if so, the details thereof;

(c) the steps taken to enhance the capacity addition in the wind sector; and

(d) the other steps taken by the Government to bring down the tariffs for both wind and solar energy?

## ANSWER

## THE MINISTER OF STATE (I/C) FOR NEW & RENEWABLE ENERGY AND POWER

## (SHRI R. K. SINGH)

(a)  The  wind  power  capacity  installed  during  2018-19  was  1480  MW  which  is  less  as  compared  to previous years, i.e. 1865 MW in 2017-18 and 5502 MW in 2016-17. The less capacity addition is due to the  transition  of  wind  power  sector  from  feed  in  tariff  regime  to  transparent  competitive  bidding mechanism and issues relating to land acquisition in certain states. Now, the bidding process has been regularized and the commissioning of projects, awarded through competitive bids has started, the capacity addition has also been accelerated.  So far, 463 MW of wind power capacity has been installed in two months of the current year, i.e. April and May of 2019-20. In addition, the wind power projects of around 8589.9 MW capacity are under implementation.

(b)  Based  on  demand  from  utilities,  SECI  floats  tenders  in  different  tranches,  size  of  which  generally varies from 1200 MW to 2000 MW.

(c)  The  Government  is  promoting  capacity  addition  of  wind  power  projects  through  private  sector investment by providing various fiscal and financial incentives such as Accelerated Depreciation benefit; concessional  custom  duty  exemption  on  certain  components  of  wind  electric  generators.  Besides, Generation Based Incentive (GBI) Scheme was available for the wind projects commissioned before 31 March 2017.In addition to fiscal and other incentives as stated above, technical support including wind resource assessment and identification of potential sites is being provided through the National Institute of Wind Energy, Chennai.

(d)  The  Government  has  issued Guidelines for Tariff Based  Competitive Bidding Process for Procurement of Power from grid connected wind and solar power projects. The wind and solar projects are  awarded at tariff  discovered  after transparent  e-  reverse  auctions  as  per the guidelines. The  lowest tariff received for wind and solar power are Rs. 2.43 per unit and 2.44 per unit respectively.

In order to facilitate inter-state sale of power through wind and solar, orders have been issued to waive inter-state  transmission  charges  and  losses  for  inter-state  sale  of  wind  and  solar  power  projects  to  be commissioned by March, 2022. Further, the wind and solar power projects are accorded 'must run' status.