The Indian Government plans to continue; beyond 2012; Generation Based Incentives (GBI) available to wind farm developers.
India had introduced the subsidy in December 2009 to encourage the development of more efficient wind farms as an alternative to a tax break involving accelerated depreciation, which failed to encourage wind projects to produce power once built.
Wind farms built by March 31, 2012, are eligible for GBI of Rs.500 per megawatt-hour of electricity they feed into the grid. The Government wants to discontinue accelerated depreciation benefit; but continue the GBI scheme. The officials have however warned of not expecting raising of GBI amount. GBI along with RECs; recently introduced; should provide enough incentive.
Meanwhile our clients are looking to acquire and develop wind assets in India. Consultants, and wind professionals please feel free to contact us.