An unexpected treasure blowing in the wind

Some good news seems miraculous. A recent assessment by the Lawrence Berkeley National Laboratory reports that India has wind resources that are 20 to 30 times greater than the Indian government estimate of 102 gigawatts (GW). According to the study, the country’s wind potential could range from 2,006 to 3,121 GW, depending on turbine size.

The great news is that wind is one of the most cost-effective and mature renewable energy sources commercially available in India. According to Berkeley National Laboratory experts, the cost of wind power is now comparable to the cost of imported coal and natural gas-based plants. In other words, wind could become a significant portion of the country’s future energy portfolio.

However, a shadow looms over the good news. Although India’s Ministry of New and Renewable Energy (MNRE) has signed a memorandum of understanding with Berkeley Lab to collaborate on wind energy research, the government recently repealed key wind power tax breaks, which may seriously jeopardize future investments in the sector. With the tax change, wind development will only be allowed to claim accelerated depreciation of 15% of the cost of equipment, down from 80%. Government estimates show that the tax break prompted the setup of more than 70% of wind facilities in India during the year that ended on March 31.

If you are interested in the future of wind energy in India, please share your own thoughts and stories!