The government plans to add 5,000 MW of capacity in the 12th Five-Year Plan by encouraging retrofitting of older wind power farms, and tightening existing rules that let promoters enjoy tax breaks even without producing electricity.
Although the ministry of new and renewable energy resources has not finalised a policy yet, its draft paper aims to re-power, or install new turbines, at these old farms, most of which were set up in the 90s. This 5,000 MW target is in addition to the 15,000 MW planned through new projects.
The ministry plans to push states into signing "renewable purchase obligations", which aim to ensure that new wind turbines are not just put up for availing of tax benefits, said joint secretary Shashi Shekhar. Such purchase obligations mandate state governments to buy some of their power requirement through renewable sources.
The draft proposes setting up more wind projects in other states such as Karnataka and northern Rajasthan, where turbines have been installed recently. "The government will also look at offshore wind projects," said another government official.
India's total wind power installed capacity is about 14,000 MW, with Tamil Nadu accounting for 43%.
Ministry officials said they are waiting for a response from wind farm companies but said it may be "hard to convince" them to invest large sums to modernize their plants. Windmills installed before 2005 need to be replaced as their capacity cannot be increased.
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