India is Asia’s largest and oldest wind energy market. To promote investment in the wind energy sector, the government provides several fiscal and financial incentives. Some of the key incentives include:
· 80 per cent accelerated depreciation in the first year on the total assets
· Various tax exemptions (including import taxes)
· Availability of grants for R&D projects
· Financing support mechanisms, such as, low interest loans
India is perhaps the only country that has a dedicated ministry for renewable energy sources – the Ministry of Non-Conventional Energy Sources (MNES). MNES has played a key role in the development of the wind sector and other renewables in India. Investment support for wind projects is mainly provided by the Indian Renewable Energy Development Agency (IREDA), which offers financing to wind projects. India has also set up a full-fledged research centre -Centre for Wind Energy Technology (C-WET) to conduct research, development, testing, certification and resource mapping. Today, India is known as a wind superpower with potential of nearly 45,000 MW and an installed capacity of 3,000 MW. It also has developed a sound manufacturing, design and research base in the sector and is emerging as a regional wind energy hub.