Energy Strategy Reviews 24 (2019) 342–357

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Review

Wind energy development and policy in India: A review T

∗
Prem Kumar Chaurasiya , Vilas Warudkar, Siraj Ahmed
Department of Mechanical Engineering, M.A.N.I.T, Bhopal, M.P, India

A R T I C LE I N FO A B S T R A C T

Keywords: India is blessed with immense renewable energy resources in general and wind energy resources in particular.
Wind energy Evaluating the potential of wind energy resources in changing the energy scenario in the country is vital for
Wind power development of wind turbine installations in near future. About 34605 MW capacity wind power plants are
Potential installed so far as up to September 2018. In the wind energy conversion/utilization, India stands on fourth
Installed capacity
position in the world. This paper presents the status and development of wind energy in India. This paper
Policy
discusses the challenges and opportunities in the development of wind energy in the country and also different
Electricity generation
approaches to increase and expand the utilization of wind resources.

1. Introduction Ministry of New and Renewable Energy (MNRE), Government of

India and several state governments have been at the forefront of
Energy demand is a key factor in the economy of a country. The providing the necessary policy support and a facilitative regulatory
energy demand in India increased rapidly to an average of 6.4% during system for the fast and orderly growth of the sector. The MNRE took
1990–2010, thanks to the significant economic growth in this period various initiatives to promote cooperation with other countries and
[1]. As a consequence of this drastic increase in energy demand, the funding authorities, like the World Bank, Asian Development Bank,
conventional sources of energy are depleting very fast. An ill-effect of United Nations Industrial Development Organization (UNIDO) in the
usage of conventional energy sources to meet the demand, is the loss to field of renewable energy. Under National Clean Energy Fund (NCEF)
environment and public health. The result of pollution like global program the ministry has taken up initiatives of wind resource assess-
warming, skin cancer, etc., has forced the scientific community all over ment in new and uncovered areas to assess the potential at 100 m level
the world to focus on alternative source of energy which can be re- and 500 new wind monitoring stations across the country. The Ministry
newed and should cause considerably less damage to the environment. of New and Renewable Energy along with the National Institute of
Use of renewable energy sources results in less emission of greenhouse Wind Energy (NIWE) has announced Indian's Offshore Wind Policy and
gases and other harmful gases such as SO2, different oxides of nitrogen also started planning to encourage a demonstration project. The gov-
and by-products of fossil fuel which are responsible for the environ- ernment is keen for the growth of wind energy sector in India.
mental degradation, health problem etc. [2,3]. The continuous atten-
tion and increased use of renewable energy may restrict the dependency 2. Global scenario of wind energy
of country on imported fossil fuel and will lead India toward self-suf-
ficiency and energy independence. Hence, it is necessary to expand and International Energy Agency (IEA) reported that in 2015 the wind
utilize the renewable energy sources like wind, solar, biomass, hydro power supplied more new power generation than any other technology
power, waste to energy etc. [3]. [6]. China is a leading nation in wind power installed capacity and has
Wind is air in motion. The uneven temperature distribution due to grown rapidly, from 300 MW in 2000 to 188,232 MW last year and
solar radiation and earth's rotation are the two main causes of wind. today accounts for 35% of the world's total wind power capacity [1,5].
Wind energy is a renewable, inexhaustible and non polluting source of Table 1 shows the cumulative installed capacity of top 10 countries. In
energy. It is an environment friendly, developing and popular alter- 2016, the wind energy sector experienced a decline in global installa-
native source of clean energy [4]. As a source of power, the potential of tion. Fig. 1 shows the cumulative wind energy capacity globally
wind energy is huge. This is clear from the rapid increase in cumulative whereas Fig. 2 shows the global annual installed capacity along with
global capacity, reaching 539 GW at the end of 2017 representing the capacity increase in annual installation.
10.7% of cumulative market growth [5]. The top ten leading countries contribute almost 90% of share in

∗
Corresponding author.
E-mail address: [email protected] (P.K. Chaurasiya).

https://doi.org/10.1016/j.esr.2019.04.010
Received 5 November 2016; Received in revised form 25 December 2018; Accepted 5 April 2019
Available online 24 April 2019
2211-467X/ © 2019 The Authors. Published by Elsevier Ltd. This is an open access article under the CC BY license
(http://creativecommons.org/licenses/BY/4.0/).
P.K. Chaurasiya, et al. Energy Strategy Reviews 24 (2019) 342–357

Table 1
Top 10 countries cumulative installed capacity 2011–2017 [5–8].
S. No. Top 10 Country MW (2011) MW (2012) MW (2013) MW (2014) MW (2015) MW (2016) MW (2017) %
Share

1 PR China 62,364 75,324 91,412 114,609 145,362 168,690 188,232 35

2 USA 46,919 60,007 61,091 65,879 74,471 82,184 89,077 17
3 Germany 29,060 31,308 34,250 39,165 44,947 50,018 56,132 10
4 Indiac 16,084 18,421 20,150 22,465 25,088 28,700 32,848 6
5 Spain 21,674 22,796 22,959 22,987 23,025 23,074 23,170 4
6 UK 6540 8445 10,531 12,400 13,603 14,543 18,872 3
7 Canadae 5265 6200 7803 9694 11,205 11,900 12,239 2
8 France 6800 7564 8254 9285 10,358 10,740 13,759 3
9 Italyab 6737 8144 8552 8663 8958 9257 9479 2
10 Brazild 1431 2508 3466 5939 8715 10,740 12,763 2

a
Rank 6 up to year 2011.
b
Rank 7 up to 2013.
c
Rank 5 up to year 2014.
d
Rank 8 by the end of 2017.
e
Rank 9 by the end of 2017.

Europe, where Germany is a leading country with the capacity addition

of 6.5 GW in the last year whereas U.S ended the year with 8.9 GW
market and continued to lead in North America. In Latin America and
Caribbean region, Brazil continues to be the promising market for wind
energy with a capacity addition of 2.7 GW. The Africa and Middle East
region added another 621 MW in the last year, however, in 2017
Australia was only the single country to add another 245 MW in the
Pacific regions to take its total installed capacity to nearly 5 GW [5].
Table 2 below shows the leading countries fulfilling electricity de-
mand by wind power in 2015.
Energy policy plays a vital role to mitigate the impacts of global
warming and crisis of energy availability. It is noticed that energy
policy could help increasing wind power generation as well as stimu-
lating the energy industry. It may be stated that without specific energy
policy, a country would not be able to solve the acute problems like
reducing green house gases (GHGs) emission, scarcity of energy, etc.
The attributes of energy policy may include legislation, international
Fig. 1. Global cumulative installed wind capacity 2005–2017. treaties, incentives to investment, the country's targeted energy gen-
eration, guidelines for energy conservation, strategies to stimulate the
energy industry, taxation and other public policy techniques as well as
the focus on new (usually renewable) energy sources. A variety of po-
licies like pricing laws, quota requirements, production incentives, tax
credits, trading systems, etc. have been developed and implemented to
promote the use of renewable energy (RE) [9]. The main objectives of
these strategies are, reducing reliance on fossil fuels, reducing the en-
vironmental impacts of the energy sector and encouraging new in-
dustrial development [10]. Some of the wind energy support policies in
different countries are discussed below in Table 3.

Table 2
Top countries supplying electricity demand by wind power in 2015 [6].
S.No. Country Number of Electricity demand Employment
Turbines covered by wind provided
power (%)

1 Uruguay 614 19.5 500

2 Germany 26,774 12 150,000
Fig. 2. Annual installed wind capacity 2005–2017.
3 United 6680 11 30,000
Kingdom
wind installation and the remaining 10% were added by the rest of the 4 Poland 2600 6.22 8400
5 Turkey 2114 6 –
countries. In 2017 nine countries had more than 10,000 MW of cumu-
6 Netherland 2174 5.6 10,150
lative installed capacity, whereas 26 countries added more than 7 Canada 6066 5 73,000
1000 MW installed capacity, which includes 17 European countries, 4 8 Australia 2062 5 2200
in Asia-Pacific, 3 in North America and 1 in Latin America and African 9 France 5696 4 12,520
countries. 10 USA 48,500 4.7 88,000
11 Brazil 4360 3.5 41,000
Asia continued to precede in the regional market of cumulative 12 PR China 92,981 3.32 280,000
installation with capacity addition of nearly 24.5 GW followed by

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P.K. Chaurasiya, et al. Energy Strategy Reviews 24 (2019) 342–357

3. Wind power potential in India

Production incentive of 1cent/kWh for the first

The growth of wind energy in India is enormous and proves to be an

Schemes for technology development and

Guarantee a long term power purchase

Investment & production tax credit option to mitigate the challenges to meet electricity demands, en-
vironmental pollution, greenhouse gas emission and depleting fossil

Schemes to join European Union

fuel etc. India has the second largest wind market in Asia after China

Market incentives and subsidy

National Clean Energy Target

CSP Global market initiative

Domestic made component
and fourth amongst the global cumulative installed countries of the
Electricity feed in tariff world after USA and Germany [4]. During this year, 4148 MW wind
Strength (highlight)

projects were commissioned. Wind Energy contributes the major por-

tion of 64.09% of total renewable energy capacity of the country [5].
offshore wind

The Indian government is also focusing on policy development to

agreement
attract investor in wind energy sector. Recently in October 2015, the
10 years

Government of India, along with the National Institute of Wind Energy

(NIWE) formulated and announced the policy framework for the first
–

offshore wind development in India. National Institute of Wind Energy,

Support
R&D

formerly known as Centre for Wind Energy Technology (C-WET) lo-

Yes
Yes

Yes

Yes

Yes

Yes
Yes
–

cated in Chennai serves as a research focal point in the improvement

Yes (total capacity 30 GW, 2020)

and development in the entire spectrum of the wind energy sector in

India [13]. NIWE also coordinate wind energy assessment program and
Yes (25% of supply, 2025)

initially estimated 49 GW of wind potential at 50 m hub-height and on

Target implementation

further survey, at 80 m hub-height, wind potential grows as much as

Yes (200 GW, 2030)

License upto 10 GW

Yes (7.2 GW, 2020)

Yes (12 GW, 2016)

Yes (10 GW, 2020)

102 GW assuming 2% land availability for all states except Himalayan

states, North-eastern states and Andaman and Nicobar Islands where
Yes (10–12%)

0.5% of land availability was assumed for energy estimation at both

heights, however land availability significantly effects the potential in
windy area and recently in 2015, using the advanced meso-micro
–

–
–

coupled numerical wind flow model, and with the corroboration of

almost 1300 actual measurements spread all over India, NIWE an-
Regulatory framework in

nounced estimated wind potential at 100 m hub-height i.e. 302 GW

Legislation (e.g. CO2

assuming actual land availability [13]. Table 4 below shows the state-
Yes (25%, 2025)

Yes (50%, 2030)

Yes (20%, 2020)

Yes (60%, 2050)

Yes (40%, 2020)

wise estimated potential at 80 m and 100 m hub-height.

The 100 m potential assessment has been carried out with realistic
emission)

and practical assumptions and by using a very high spatial resolution of

500 m, using advanced meso-micro coupled numerical wind flow model
2008

along with the corroboration of 1300 actual measurement from all over
–

–
–
–
–

India. In addition, this study also includes actual estimation of land

availability using NRSC 56 m resolution Land Use Land Cover (LULC)
Data (AWiFS) 1:250K scale and with consideration of 6 MW/sq. Km.
Public loans/

The development land features such as roads, railways, Airport, etc.,

financing

land area with elevation more than 1500 m and slope exceeding 20°
Yes
Yes

Yes

Yes
Yes

Yes

Yes

have been excluded. The present potential assessments at 100 m has

–

–
–

been prepared considering Capacity Utilization Factor scale more than

20% and have been classified into 3 ranks (Rank I: Wasteland, Rank II:
Cultivable Land and Rank III: Forest Land). The considerable weightage
Sales or energy tax

has been considered for potential assessment i.e. 80% to Rank I, 30% to
Rank II and 5% to Rank III.
More than 95% of the wind potential is concentrated in five states in
exemption
Summary of Wind Energy policy in different countries [9–11].

southern and western India [2]. This scenario made it possible to

identify the suitable areas for harnessing wind power for electricity
Yes

Yes

Yes
–

–
–
–

–
–
–

generation. Table 5 shows the installed wind energy potential up to

Support (e.g. subsidies)

2017 along with state–wise share of wind energy in total wind power
capacity, Table 5 also shows the tentative state–wise break up of 60 GW
wind power to be attained by 2020.
Wind energy continues to dominate renewable energy industry in
Investment

India. The Indian government in its 12th five-year plan (2012–2017),

had planned to add 15,000 MW of wind power in this period. The
Yes
Yes

Yes

Yes
Yes
Yes
Yes
Yes

Yes

Yes
–

Ministry is keen with the objective to carry out wind resource assess-
Support (FIT/RPS)

ment studies at North-Eastern Region for the development of wind

energy sector. The Ministry has also allocated the separate budget for
RPS (2003)
FIT (1993)

FIT (1991)
FIT (2005)

FIT (2002)

the wind energy system and energy parks. During the year 2015–2016,
Principal

four 50 m level wind monitoring stations were installed in the region, so

RPS
FIT

FIT

FIT

FIT

far 72 monitoring stations have been installed at 20 m, 25 m and 50 m

–

level to assess the realistic potential of the wind resource in the region
Denmark

Germany

Australia
Country

Canada

with the joint efforts of NIWE and state nodal agencies. A cumulative
Algeria
Turkey
Table 3

Japan
China

Korea
Egypt
USA

capacity of 413 kW Small Wind Energy Hybrid Systems had been in-
stalled in North Eastern region including Sikkim by the end of 2017.

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Table 4
Estimated Potential at 80 m and 100 m height (MW) [12,14,15].
S.No. State/UTs 80 m (#$) 100 m

RANK I RANK II RANK III TOTAL

1. Andaman & Nicobar 365 4.12 3.43 0.88 8.43

2. Andhra Pradesh 14497 22525.5 20538.1 1165 44228.6
3. Arunachal Pradesh* 236 – – – –
4. Assam* 112 – – – –
5. Bihar 144 – – – –
6. Chhattisgarh* 314 3.24 57.03 16.31 76.59
7. Diu Damn 4
8. Gujarat 35071 52287.59 32037.83 105.09 84431.33
9. Goa – 0 0.08 0.76 0.84
10. Haryana 93 – – – –
11. Himachal Pradesh* 64 – – – –
12. Jharkhand 91 – – – –
13. Jammu & Kashmir* 64 – – – –
14. Karnataka 13593 15202.36 39802.59 852.4 55857.36
15. Kerala 837 332.63 1102.56 264.38 1699.56
16. Lakshadweep 16 3.5 3.4 0.77 7.67
17. Madhya Pradesh 2931 2216.39 8258.55 8.93 10483.88
18. Maharashtra 5961 31154.76 13747.43 492.15 45394.34
19. Manipur* 56 – – – –
20. Meghalaya* 82 – – – –
21 Nagaland 16 – – – –
22. Odhissa 1384 1666.2 1267.06 160.22 3093.47
23. Pondicherry 120 69.43 79 4.4 152.83
24. Rajasthan 5050 15414.91 3342.62 12.96 18770.49
25. Sikkim* 98 – – – –
26. Tamil Nadu 14152 11251.48 22153.34 394.82 33799.65
27. Uttarakhand* 534 – – – –
28. Uttar Pradesh 1260 – – – –
29. West Bengal* 22 – – – –
30. Telangana – 887.43 3347.52 9.34 4244.29
Total (MW) 102788 153019.59 145742.59 3489.31 302251.49

Note: For 80 m ∗Wind potential has yet to be validated with actual measurements.
#
Estimation is based on meso scale modelling (Indian Wind Atlas).
$
As actual land assessment is not done on a conservative consideration 2% land availability for all states except Himalayan & North eastern states, Andaman Nicobar
Islands and Poor windy states has been assumed. In other area 0.5% land availability has been assumed.

The state-wise break-up capacity is shown in Table 6 [19]. Table 6

The Ministry has adopted plans to carry out realistic assessment of Cumulative installed wind power capacity (kW) of North Eastern states [19].
wind resource in North Eastern region by installing 200 wind mon- S. No State Cumulative
itoring stations, ranging from 50 m to 80 m height. Fig. 3 below shows Installed Capacity
the 50 m wind monitoring station installed at Rombagre, Meghalaya.
Fig. 4 shows the cumulative installed capacity and year wise installed 1. Arunachal Pradesh 7
2. Assam 6
capacity of wind power for the ten years.
3. Manipur 140
4. Meghalaya 201
3.1. Offshore wind power status in India 5. Sikkim 16
6. Tripura 2
7. Nagaland 20
India is blessed with a 7517 km of coastline, the distance 5423 km
8. Mizoram 21
belongs to peninsular India and 2904 km to the Andaman Nicobar, and
Lakshadweep Island, is beginning to discover offshore wind energy as a

Table 5
State wise wind power capacity (MW) [16,17,and18]].
S. No State 2014 (MW) 2015 (MW) 2016 (MW) 2017 (MW) % Tentative by 2020
Share
2017

1. Tamil Nadu 7276 7515 7694 7970 24.2 11,900

2. Maharashtra 4098 4638 4666 4778 14.5 7600
3. Gujarat 3414 3877 4441 5537 16.8 8800
4. Rajasthan 2820 3866 4217 4282 13.0 8600
5 Karnataka 2409 2872 3154 3793 11.5 6200
6 Andhra Pradesh 753 1155 2092 3835 11.6 8100
7 Madhya Pradesh 439 1126 2288 2498 7.6 6200
8 Kerala 55 35 43 51 0.15 –
9 Telangana - – 99 101 0.31 2000
10 Others - 4 4.30 4.30 0.013 600
Total 21,264 25,088 28,700 32,848 100 60000

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(GWEC). The other associated partners are Centre for Study of Science,
Technology and Policy (CSTEP), the Gujarat Power Corporation Limited
(GPCL) and the World Institute of Sustainable Energy (WISE). National
Institute of Wind Energy (NIWE) joined the consortium as knowledge
partner. The Ministry of New and Renewable Energy will play role as a
nodal ministry and government entities for the development and use of
Maritime zone under Exclusive Economic Zone and will also look upon
overall monitoring of offshore wind energy, preparation of guidelines.
The National Institute of Wind Energy (NIWE), Chennai is a nodal
agency and will carry out resource assessment, surveys and studies in
EEZ. NIWE will also play a major role to facilitate developers in ob-
taining clearance and NOCs from different Ministries and Departments
of concern [13]. The initial studies and an EU funded study have in-
dicated potential for offshore wind energy in Gujarat and Tamil Nadu
coast, still it requires validation through actual measurement.
India has made progress by identifying eight zones in the coast of
Gujarat and Tamil Nadu. Accordingly, a LiDAR based offshore mea-
Fig. 3. Wind monitoring station installed at Rombagre, Meghalaya [13]. surement campaign is initiated in the Gulf of Khambhat, Off Gujarat
cost. Additionally, NIWE has installed meteorological mast along the
premeditated energy resource to mitigate energy crisis as well as to coastline for preliminary assessment on the offshore potential. Further,
fulfil future energy demands [20]. The initial assessment and wind various agencies, like Indian National Centre for Ocean Information
resource data collected along the coastline of Rameshwaram and Ka- Service explored estimates based on the data available. The NIWE has
nyakumari in Tamil Nadu and Gulf of Khambat in Gujarat have shown a also published an interim report showing the preliminary short-term
promising potential for the development of offshore wind power. A measurement result of offshore wind in India. Based on the satellite
preliminary measurement suggests a possible potential to establish data/analysis offshore potential need to be validated or re-checked by
around 1 GW capacity wind farm along the coastline of Tamil Nadu and long term measurement to take efficient decision for identifying and
in Gujarat (see Fig. 5). The various advantages of offshore wind have notifying the zones/sub-zones as per offshore policy. The detail of the
been discussed by Singh M [20]. selected site at Gulf of Khambhat is tabulated below in Table 7 [21].
Facilitating Offshore Wind in India (FOWIND) project report has The major challenges in India to develop offshore wind power are
identified two important maritime areas to harness the offshore wind high capital cost, the data required for the calculation of wind potential
resources. of suitable sites is not available, unavailability of bathymetric data,
regulatory and policy framework (see Fig. 6).
• Indian territorial waters, approximately up to 12 nautical miles
(nm) from the baseline
• Beyond 12 nm and 200 nm (Exclusive Economic Zone). 4. Wind power support program in India

The FOWIND is an association led by Global Wind Energy Council During 2016–17, MNRE had taken various policy initiatives in wind
energy sector that include policies like Introduction of Bidding in wind

Fig. 4. Cumulative and year wise wind power installed capacity (MW).

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P.K. Chaurasiya, et al. Energy Strategy Reviews 24 (2019) 342–357

Fig. 5. Offshore wind density at 50 m height.

Table 7 deployment of wind energy utilization in the country to fulfil the

Identified site details. country's electricity demand. To achieve the target electricity demand
Site Gulf of Khambhat (Zone -B)
of the country the government launches the various programs to sup-
port the growth of renewable energy such as wind, solar etc. It can be
District/State Amerli/Gujarat seen from Fig. 7 that the support policies have increased wind energy
LiDAR Location 20°45′19.10″ N, 71°41′10.93″E capacity from time to time and has promoted the country to the fourth
Distance from coast 23 km
position globally.
Nearest Airport Diu
Nearest Port Pipavav/Jaffrabad S.N Singh et al. [23] discuss several schemes and policies such as
Nearest Electric substation Ultratech 220 kV financial assistance etc. initiated by the government for promoting,
CRZ (as per 2011 notification) Zone IV developing and support the use of renewable energy source. The gov-
ernment has come up with some schemes they are discussed below:
a) Generation based incentive scheme: The Generation Based
Incentive (GBI) scheme was discontinued in March 2012, but again
reintroduced in August 2013. This scheme has been designed to ac-
complish 15,000 MW target during the 2012 to 2017 period. The main
objectives of GBI includes the broadening of investor base, incentivize
actual generation with the help of a outcome based incentive and to
facilitate entry of large Independent Power Producer and Foreign Direct
Investment to the wind power sector. Under this scheme, wind elec-
tricity producers will receive INR 0.50 per unit of electricity fed into the
grid for a period not less than four years and not higher than ten years
with a capital of INR 100 Lakhs per MW. The total reimbursement in a
year will not go beyond one-fourth of the maximum limit of the in-
centive during first four years. GBI scheme is applicable to the wind
turbines commissioned on or before 01.04.2012, for entire 12th plan.
This scheme has raised Foreign Direct Investment to 100% in wind
energy sector. In 2011, the country added 2300 MW of wind power
capacity, but the discontinuation of GBI in 2012 led the down fall in the
wind energy sector and the figure came down to 1700 MW, but by re-
Fig. 6. Photographic image of 100 m MAST and LiDAR installed at Dhanuskodi, instating GBI the capacity addition of 15,000 MW in next plan may be
Tamil Nadu. achieved. According to IREDA, between March 2010 to March 2012,
2021 MW capacity of wind projects availed the benefits of GBI scheme,
energy sector, Re-Powering policy, Draft Wind-solar Hybrid policy, reaching a total allocation of 4000 MW [13]. More than 5000 MW of
New Guidelines for development of Wind power project, etc [22]. A new capacity was installed during the fiscal years 2010/11 and 2011/
financial outlay of $44.79 million has been expensed in R&D in wind 12, but only 2000 MW projects registered for the GBI benefits. This
energy sector by the government of India in its 11th five-year plan. In scheme above the tariff approved by the Electricity Regulatory Com-
12th five-year plan (2012–2017), government has approved an outlay missions and disbursed on a half-yearly basis through IREDA [24,25].
of $539 million for New and Renewable Energy Programmes. Fig. 7 Fig. 8 shows the fund allocated for wind power development under
shows the various support policies announced by the government of generation based incentive scheme.
India to promote wind energy development. This support policy has b) Accelerated Depreciation: The Accelerated Depreciation (AD)
increased the attention of investors and industrialists for the was introduced in 1994, with a depreciation rate of 100%. In 2002 the

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P.K. Chaurasiya, et al. Energy Strategy Reviews 24 (2019) 342–357

Fig. 7. Time line of policy announcement.

decreasing the greater fraction of taxable income. The AD does not

directly provide any monetary assistance to wind power project de-
velopers. However, there are significant post-tax benefits for the in-
vestors, in terms of the timing of cash flows. Reducing tax liability in
the premature years of a useful life period increases profits in the near
term, albeit at the cost of higher taxation in the longer term. This re-
presents a circuitous benefit in terms of the net present value (NPV) of a
project.
Under this scheme the wind power producers intending to avail the
benefit were required to submit all the documentary proof and register
with the Indian Renewable Development Agency (IREDA). IREDA issues
a certificate of eligibility for availing the AD benefit from the Income
Tax Department and a Unique Identification Number for each wind
turbine. Once in process, developers had to provide their generation
data to IREDA. The details of depreciation availed by the companies are
required to submit in Income Tax Department as part of their annual
financial accounts. Fig. 9 shows the structure of the AD scheme [25,26].
c) Tariff Design for Wind Power: The State Electricity Regulatory
Commission (SERC) in line with CERC and similar industry expectations
espouse an approach on a cost plus basis for designing tariff for the
Fig. 8. Fund released for wind power programme under GBI scheme [9].
electric energy from wind. The SERC has announced different tariffs for
the procurement of power from wind power projects in different states.
depreciation rate was reduced to 80% and the scheme was withdrawn Tariffs for some of the key states are discussed in detail below in Table 8
completely in March 2012. In August 2014, the AD was reinstated at the [23].
rate of 80% for the wind power plants installed on or after April 1, Recent amendment in tariff policy provides no inter-state trans-
2014. The wind energy industry has been the primary beneficiary, due mission charges as well as the charges generated due to the loss of wind
to the relative maturity of the technology, resource availability and pre- power during selling of wind power to facilitate the inter-state trans-
existing experience. The AD tax benefit provided the necessary financial mission from one state to another are also waived of under certain
advantage to attract different private sector investment in the wind conditions.
energy sector, and facilitated the ingress of a new class of investors
comprised of high net worth individuals (HNIs), corporations, and small
and medium sized enterprises. The rising number of installations also
• The waiver is applicable for wind power projects which get com-
missioned till March 31, 2019 and for 25 years from the date of
promoted the growth of domestic wind equipment manufacturing and commissioning of the projects. Further, the waiver is also available
other linked services sectors. The AD increases the depreciation on the for projects having power purchase agreements (PPAs) with discoms
assets during the initial years, which allows the asset owner to write off for fulfilment of RPO.
more of the worth asset during the initial years of ownership, thereby
• The ISTS charges is only applicable for wind projects awarded

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1 2
MNRE, GOI Guidelines NIWE

Technical
Approval &
Certification

Commissioning Financial
Certificate Details
3 Wind Power 5
State Nodal Income Tax
Agency (SNA) Project Department GOI
Approval to
claim AD

Issuance of
Registration
AD eligible
certificate

4
IREDA

Fig. 9. Accelerated Depreciation scheme structure.

through a competitive bidding process. which resulted in 12 Billion Unit of wind power evacuation during
2016–2017 compares to around 7 Billion Unit earlier. For accurate
The elements which play a significant role in determining tariff are forecasting and scheduling, it is essential to put in a metering and
capital cost, operation and maintenance cost, plant life, capacity utili- communication infrastructure at every pooling station for real time
zation factor, depreciation, return on equality, interest on debts, debt- generation of data.
equality ratio and interest on working capital. The tariff design process f) Repowering Policy: In order to optimally utilize the wind energy
for the state of Madhya Pradesh is shown below as an example [27]. resources, repowering is crucial. The ministry has drafted a repowering
Table 10 below discusses the parameter and various factors for the policy for Wind turbine generators of capacity 1 MW and below for
design of feed in tariff. repowering. Under this policy, IREDA will provide an additional in-
d) Renewable Energy Certificate Scheme (REC) and Renewable terest rate rebate of 0.25% for repowering projects. As per the repow-
Purchase Obligation (RPO): Government of India launched the re- ering policy, all other benefits are also available to the repowered wind
newable energy certificate (REC) mechanism to relieve states with high projects, i.e. accelerated depreciation or GBI are applicable. Additional
share of wind power in their grid, wherein, renewable project devel- generation could either be purchased by discoms at Feed-in-Tariff ap-
opers can vend power to host utilities at tariff corresponding to their plicable in the state at the time of commissioning of the repowering
average procurement price and to obtain tradable certificates (REC). project or allowed for third party sale [28].
REC mechanism has encouraged the windy states to deploy additional g) Wind-Solar Hybrid Policy: MNRE issued the draft of
capacity by reducing the procurement cost of wind. It began in Wind–Solar Hybrid Policy with the objective of providing a framework
February 2011 and almost 52% of total capacity of 4470 MW wind for promotion of large grid connected wind-solar PV system for optimal
power received REC registry. The issuance fee of an REC has been re- and efficient utilization of transmission infrastructure and land, redu-
duced from INR 10 to INR 4 per certificate by the Central Electricity cing the variability in renewable power generation, and achieving
Regulatory Commission (CERC). The new fee is effective from 1 April better grid stability. The objective of this policy is to achieve wind-solar
2014. The Renewable Purchase Obligation (RPO) varies from state to hybrid capacity of 10 GW by 2020 and to encourage new technologies,
state and is generally in the range of 3–12% and can go higher de- methods and way-out involving combined operation of wind and solar
pending on the orders of SERCs (for the year 206–17). However, there PV plants [28].
are some states which are not able to achieve RPO levels required by h) Wind Bidding Scheme: To enable discoms of non-windy states
the SERCs. A major problem in RPO and REC provision has been the to fulfil their non-solar RPO obligation through purchase of wind power
failure of the regulators to enforce these provisions. The REC market at a tariff determined by transparent bidding process. This scheme was
has not taken off, though institutionally it is established [25,28]. sanctioned by MNRE on June 14, 2016 for setting up of 1 000 MW Inter-
e) Forecasting and Scheduling Mechanism: The CERC has noti- State Transmission System (ISTS) connected Wind Power Projects. The
fied a policy for the mechanism of scheduling and forecasting in case of wind bidding guidelines under Section 63 of Electricity Act, 2003 issued
inter-state transmission of wind power. The state of Gujarat, Tamil by the Ministry of Power, enables the states to bid for wind power
Nadu, Madhya Pradesh, and Odisha, has already notified regulatory projects. The first wind bidding was concluded at low tariff of INR 3.46
draft for intra-state transmission of wind power. The state of Andhra per kWh of wind energy. The SECI issued letter of allocation (LoA) to
Pradesh, Chhattisgarh, Jharkhand, Karnataka, and Rajasthan has fina- the selected five bidders on April 5, 2017, and the projects under this
lized their regulations. The forecasting and scheduling exercise has Scheme are likely to be commissioned by September 2018. The wind
been already conducted in Tamil Nadu recently by NIWE, Chennai tariff in India touched the lowest level of INR 2.64 per kWh in the

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Table 8
Feed in Tariff across different states [18].
State Feed in Tariff (INR) PPA Tenure (Years) Third Party Sale Capital subsidy/other incentives
And Captive usage

Andhra Pradesh 3.50 25 Permitted Industrial status. Reactive power: 10 paise per kVARh up to 10% & 25 paise per kVARh above 10%.
Gujarat 4.23 25 Permitted Reactive power < 10% energy exempted, then 10 paise/kVARh.
Reactive power > 10% of energy exported, then 20 paise/kVARh.
Haryana 6.14 25 Permitted –
Karnataka 3.70 10 Permitted No electricity duty or 5 Years. Reactive Power: 40 paise per kVARh.
Kerala 3.64 20 Permitted Depreciation: 5.83% p.a. for the first 12 years and remaining spread over useful life.
Madhya Pradesh 4.35 25 Permitted No Electricity Duty for 5 years. Reactive Power: 27 paise for kVARh. Reactive Power: 25 paise per
kVARh.
Maharashtra Wind Zone I- 5.67 (without AD), 4.86 (with AD) 13 Permitted Power evacuation arrangement, approach road, electricity duty, loan to cooperative societies.
Wind Zone II- 4.93 (without AD), 4.23 (with AD)

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Wind Zone III- 4.20 (without AD), 3.60 (with AD)
Wind Zone IV- 3.78 (without AD), 3.24 (with AD)
Odisha 5.31 (without AD), 5.36 (with AD) 13 Permitted –
Punjab 5.96 (w/o AD) 5.36 (with AD) 10 Permitted –
Rajasthan 5.18 (without AD), 4.90 (with AD)-for projects in Jaisalmer, Jodhpur 25 Permitted Exemption from electricity duty @50% for 7 years. Reactive power 5.75 paise per KVArh with
and Barmer districts. escalation of 0.25 paise per year.
5.44 (without AD), 5.14 (with AD)-for other districts
Tamil Nadu 3.51 20 Permitted Reactive power: 25 paise per kVARh up to 10% & 50 paise per VARh above 10%.
Uttarakhand Wind Zone I – 5.15 (without AD), 4.75 (with AD) 25 Permitted
Wind Zone II – 4.35 (without AD), 4.00 (with AD)
Wind Zone III – 3.65 (without AD), 3.35 (with AD)
Wind Zone IV – 3.20 (without AD), 2.90 (with AD)
West Bengal 5.70 10 Permitted Reactive power: 20 paise per kVARh

Wind FIT values on the basis of wind zone, as determined by the central commission for financial years, 2014–15, 2015–16 and 2016–17 is shown in Table 9.
Energy Strategy Reviews 24 (2019) 342–357
P.K. Chaurasiya, et al. Energy Strategy Reviews 24 (2019) 342–357

Table 9 to promote wind energy sector, under this scheme any wind project
Wind zone FIT value in India [18]. generating power before 31 March 2013 are allowed to accept tax
Wind Zone Annual WPD (W/m2) Feed in Tariff value (INR/kWh) holiday for the first ten years under section 80 I A of the Income-Tax,
Government of India. This scheme has been deployed to the under-
2013–14 2014–15 2015–16 takings which started distribution, generation and transmission of
power by 31 March 2016.
Wind Zone 1 < 200 6.03 6.36 6.57
Wind Zone 2 201–250 5.49 5.78 5.98
Wind Zone 3 251–300 4.83 5.08 5.26 5. Power purchase agreement
Wind Zone 4 301–400 4.02 4.24 4.38
Wind Zone 5 > 400 3.77 3.97 4.11 PPA is a contract between two parties, one which generates elec-
tricity (the seller) and one which purchase electricity (the buyer). The
PPA defines all the commercial terms for the sale of electricity between
second wind auction (1000 MW) conducted by SECI on October 4, 2017
the two parties, including when the project will begin commercial op-
[28].
eration, schedule for delivery of electricity, penalties for under delivery,
i) Offshore Wind Energy Policy: This policy promotes optimum
payment terms, and termination. A PPA is the principal agreement that
exploitation of offshore wind power generation. The government of
defines the revenue and credit quality of a generating project. Standard
India is targeting to have a generating capacity of 100 GW by 2022
provisions as part of the PPA includes the following [30].
through this mission. The policy supports the development of offshore
wind energy through fiscal incentives, allowing Foreign Direct
Investment (FDI) participation, Public Private Partnership, and inter- • As the PPA period influences the tariff by determining the period
over which the investment is returned to the investor, longer PPA is
national collaborations. The National Offshore Wind Energy Policy of-
favoured for lower tariffs. The PPA period should not be less than 25
fers various fiscal incentives like relaxation in custom duty, excise duty
years from the date of the SCD or from the date of full commis-
exemption for the purchase of technology and equipment and also of-
sioning of the projects, whichever is earlier. The PPA may be further
fers exemption from service tax for conducting service such as resource
extended on such term and conditions as mutually agreed between
assessment, use of survey vessel and installation of vessels and on stu-
the parties signing the PPA and approved by Appropriate
dies conducted by third parties (oceanographic and environmental
Commission.
•
impact). The policy also indicates Tax holiday scheme offered for the
The WPG will declare the annual CUF of its Project at the time of
first ten years of wind power generation from offshore. The major ob-
signing PPA and will be allowed to revise the same once within first
jective of offshore wind policy is tabulated below (see Table 11) [13].
year. The declared annual CUF should not be less than 22% in any
j). Green Energy Corridors: The maximum wind power potential is
case. In case, the project supplies energy less than the energy cor-
concentrated in 7–8 wind resource-rich states wherefrom wind power is
responding to the minimum CUF, the WPG will be liable to pay
evacuated. This requires strengthening of intra-state as well as inter-
penalty to the procurer for the shortfall in availability of energy.
state transmission infrastructure. The Green Energy Corridors Project
However, this will be relaxable to the extent of grid non-availability
plays a significant role in setting up transmission requirement for re-
for evacuation, which is beyond the control of WPG. In case, if the
newable power capacity addition. Under this scheme the various intra-
WPG generates more power more than the delivered CUF than the
state transmission infrastructure projects of total cost over 10,000
WPG will be free to sell it to any other entity provided first right of
crore, in eight states, has already been approved and the central gov-
refusal will vest with the Procurer(s).
ernment is providing 40% of the project cost as grant from National
Clean Energy Fund and another 40% of the project cost is available as • The WPG will be free to re-power their plants during the PPA
duration. However, the Procurer will be obliged to buy power only
soft loan through the German Bank [28].
as per terms of PPA.
•
Additionally government with an aim to attract wind power com-
The PPA shall contain provisions with regard to force majeure de-
ponent manufacturing industry, has increased concession on Basic
finitions, exclusions, applicability and available relief on account of
Customs Duty from 5% to 10% of forged steel rings used in the pro-
force majeure as per the industry standards. The WPG shall intimate
duction of bearing of wind-operated generators. The Excise duty was
the Procurer about the occurrence of force majeure within 15 (fif-
brought down from 12% to Nil on forged steel rings used in the man-
teen) days from the start of force majeure and the Procurershall take
ufacture of bearings of wind-operated electricity generators [29]. The
a decision on his claim within 15 days of the receipt of the in-
government launched various attractive scheme called as Tax holiday
timation.

Table 10
Structure of tariff calculation for wind power in Madhya Pradesh, India.
System Factor Involved Value decided by commission

Capital Costs (Rs. Lacs/MW) including cost of Cost of land, plant and machinery, civil works, erection, commissioning, 596
power evacuation cost of power evacuation and other related expenses
Capacity utilization Factor (%) Wind regime of the site, quality, capacity and age of machines installed, 20
height of the hub, length of blade (swift area) etc.
Operation & Maintenance Expenses (Rs.Lacs per Comprise manpower expenses, insurance expenses, spares and repairs, 1% of capital cost in 1st year with an escalation of
annum) consumables and other expenses (statutory fees etc.). 5.72% for each year thereafter
Plant Life (years) 25 – 25
Depreciation (%) – 7% per annum for first 10 yrs and balance 20%
Return on Equity (%) – 20% pre-tax
Interest on Debt (%) per annum – 12.75
Debt-Equity Ratio 70–30
Interest on working capital on (%) O&M expenses for 1 month 13.25
Receivables equivalent to 2 months of energy charges based on normative
CUF
Maintenance spares @15% of O&M expenses
Discounting rate (%) – 10.2

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Table 11
Objectives of the policy for development of offshore wind farm.
S.No. Objectives Essential Components

1 To Explore and Promote Deployment of Offshore Wind Farms in the Exclusive Preliminary Resource Assessment and preliminary oceanographic & bathymetric
Economic Zone (EEZ) of the country, including those under Public Private studies for demarcation of blocks
Partnership.
2 To Promote Investment in Energy Infrastructure Environment Impact Assessment (EIA) study of proposed Offshore Wind Farms
regarding aquatic life, fishing etc., studies relating to navigation, undersea mining
and related Exploration/exploitation activities and other users of the sea.
3 To Promote Spatial Planning and Management of Maritime Renewable Energy Detailed studies & surveys - These studies will determine the construction costs for
Resources in the Exclusive Economic Zone of the country through suitable special foundations, special ships for both operation and maintenance requirements.
incentives.
4 To Achieve Energy Security and to reduce carbon emission. Sea Bed Lease Arrangement. Statutory Clearances and NOCs.
5 To Encourage Indigenization of the Offshore Wind Energy Technology. Grid Connectivity and Evacuation of Power (both offshore and onshore).
6 To Promote Research and Development in the Offshore Wind Energy Sector. Technology, Financing and Insurance and Incentives.
7 To facilitate development of Project EPC and Operation & Maintenance with Security of offshore installations and confidentiality of the data collected during
regard to offshore wind industry. studies and surveys.
8 To develop coastal infrastructure and supply chain to support heavy construction Oversee working and to provide necessary support to the Nodal Agency i.e. NIWE for
& fabrication work and the Operation & Maintenance activities. smooth functioning.

• Generation Compensation for Off-take Constraints: The Procurer more active part in grid operation and control. The unit size of ma-
may be constrained not to off-take the power scheduled by WPG on chines has gone up to 3.00 MW. Over 50 different models of wind
account of Grid unavailability or in the eventuality of a Back-down. turbines are being manufactured by more than 20 different companies
The WPG and the Procurer shall follow the forecasting and sche- in India. The technology used in wind turbines is based on a squirrel-
duling process as per the regulations notified by Appropriate cage induction generator connected directly to the grid. Power pulsa-
Commission. The Government of India, as per Clause 5.2(u) of the tions in the wind were almost directly transferred to the electrical grid
Indian Electricity Grid Code (IEGC), encourages a status of ‘must- by this technology [31]. The top 10 WT manufacturers in 2015 and
run’ to wind power projects. Accordingly, no wind power plant duly their priority generator technologies are illustrated in Fig. 10 [32].
commissioned should be directed to back down by a Discom/Load a) Doubly-Fed Induction Generator (DFIG): It gives a variable
Dispatch Centre (LDC). In case, such eventuality of Back down arises speed controlled wind turbine with a Wound Rotor Induction Generator
like consideration of grid security or safety of any equipment or (WRIG) and partial scale power converter on the rotor circuit. In this
personnel or other such conditions, the WPG shall be eligible for a configuration, stator is directly connected to the grid, while a partial
Generation Compensation from the Procurer. scale power converter controls the rotor frequency and the rotor speed.
• Payment Security: Case 1. Direct procurement by Distribution li- The power rating of this partial-scale frequency converter defines the
censee from WPG: The Distribution licensee shall provide payment speed range. Moreover, this converter performs reactive power com-
security to the WPG through Revolving Letter of Credit (LC) of an pensation and provides a smooth grid interconnection. The smaller
amount for a period not less than 1 (one) months' average billing frequency converter makes this concept attractive from an economical
from the Project under consideration and Payment Security Fund, point of view. In this case, the power electronics is enabling the wind
which shall be suitable to support payment for at least 3 (three) turbine to act as a dynamic power source to the grid. However, its main
months' billing of all the Projects tied up with such fund or in ad- drawbacks are the use of slip-rings and the protection schemes/con-
dition to a) & b) above, the Procurer may also choose to provide trollability in the case of grid faults [31].
State Government Guarantee, in a legally enforceable form, ensuring b) Fixed speed Induction Generators (FSIG): The fixed speed
that there is adequate security to the WPG, both in terms of payment induction generator (FSIG) consists of squirrel cage induction generator
of energy charges and termination compensation if any. that is coupled through a gearbox to the wind turbine rotor. The ad-
Case 2. Intermediary-Procurer procures from the Wind Power vantages of FSIG are, it is robust, easy and relatively cheap for mass
Generator and sells to the Distribution licensee: a) The Intermediary production. It enables stall-regulated machines to operate at a constant
Procurer shall provide payment security to the WPG through Revolving speed when it is connected to a large grid, which provides a stable
Letter of Credit (LC) of an amount for a period not less than 1 (one) control frequency. Although, the stall control method is usually used in
months' average billing from the Project under consideration and combination with the fixed speed FSIG for power control, the active
Payment Security Fund, which shall be suitable to support payment stall control or pitch control have also been applied. The various dis-
of at least 3 (three) months' billing of all the Projects tied up with such advantages of FSIG are lack of control possibilities of both active and
fund. b) The Distribution licensee shall provide payment security to the reactive power, gearbox breakdown due to large mechanical loads and
Intermediary Procurer through Revolving Letter of Credit (LC) of an the large fluctuations in output power. Due to these reasons, wind
amount not less than 1 (one) months' average billing from the Project(s) turbine manufacturers are increasingly interested in variable speed
under consideration and State Government Guarantee, in a legally devices [31].
enforceable form, such that there is adequate security, both in terms of c) Synchronous Generators (SG): Synchronous generators (SG) are
payment of energy charges and termination compensation if any. considered one of the most-promising technologies for multi-mega watt
(MW) wind energy conversion systems. The synchronous generators
can be classified into the electrically excited synchronous generator
6. Advancement in technology (EESG) and the permanent magnet synchronous generator (PMSG).
Excitation is provided either with rotor windings or permanent mag-
With the modern technology incorporated in the wind turbines, nets. Hence, full scale power converters (FSCs) are needed, and a re-
wind power generation limits have been uplifted. Hence, penetration duced scale converter for the excitation is required for synchronous
level of wind power has become more significant and is leading to more machines without permanent magnets [31].
complex, sophisticated and reliable interconnection requirements. d) Maximum Power Point Tracking Technique (MPPT): To en-
Initially, wind power did not have any serious impact on the power sure the higher operational efficiency of wind energy conversion system
system control, but now due to its size, wind power has to play a much using DFIG and power electronic converter the suitable maximum

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Fig. 10. Top 10 Wind turbine manufacturers in 2015.

power point tracking (MPPT) technique is required to compensate un- 7. Barriers in development of wind energy technology in India
known or time-varying parameters, which are causes of poor efficiency.
The principle aim of MPPT controller is to maximize the generated The principle of extracting wind energy is converting the kinetic
output electric power and generator efficiency without a low speed or energy of wind using rotating turbine and by using a generator further
high-speed shaft encoder, eliminating concern about sensor reliability. converting it into electrical energy. It seems simple but there are var-
The various possible MPPT techniques which are currently in practice ious barriers in developing the wind energy sector, which include so-
are identified as Power system stabilizers (PSS) in DFIG system, which cial, environmental and techno-economic impacts [34]. Fig. 12 shows
improves the damping of oscillations in the network, adjusting the DC/ the immediate issues which need to be overcome in harnessing wind
DC converter duty cycle, Power Signal Feedback (PSF) control for dy- power. Some of the key challenges in the development of wind energy
namic stability control, matrix converter in DFIG [32]. in India have been discussed below.
Fig. 11 shows the evolution of wind turbine technologies and power a. Lack of Evacuation and Transmission Infrastructure: The lack
electronics showing how the evolution of techniques has added the of adequate evacuation and transmission infrastructure is one of the
capacity addition in wind energy potential. Today, due to the latest biggest barriers in harnessing the wind energy potential. For instance,
technology wind turbines and wind power plants have increased both in attractive potential wind sites in Rajasthan, Gujarat, and coastal Tamil
size and number which has increased the power production. Nadu remain less tapped because of lack of adequate grid evacuation
capacity and transmission infrastructure. Power evacuation system,

Fig. 11. Wind turbine evolution and trend of power electronic conversion (blue indicates power level of converters) in the last 30 years [33]. (For interpretation of
the references to colour in this figure legend, the reader is referred to the Web version of this article.)

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Fig. 12. Nation-wide immediate issues in harnessing wind potential.

which includes sub-stations, transformers and transmission links are not Wind Energy (NIWE), Chennai, has initiated a various resource as-
adequate to carry the power generated from high wind areas to load sessment, but the basic data on the actual generation volume of wind
centres. The other part is that frequent fluctuation in wind generation energy is not realistic as can be seen from the case of Tamil Nadu where
leads to frequent unscheduled interchanges at the state level and from a the actual installed capacity has already surpassed the estimated po-
grid discipline and grid security point of view it becomes a major issue. tential [38].
The issue of evacuation and transmission infrastructure has been dealt d. Land Availability: The land availability issue is a challenge for
in detail in subsequent sections on states including lack of commu- wind power generation in India. The conversion of land (if available)
nication network in distant areas, regarding water and roadways in from agricultural to non agricultural and receiving clearance (for pro-
order to carry towers, larger and heavier components to wind farms. tected area) from authorities is time-taking process and difficult task.
Transmission and distribution lines are not sufficient for power eva- There is a need to analyse the land use and land cover data of India to
cuation which restricts the wind farm to get connected and grid in- identify the region most suitable for wind farm development
tegration requires serious attention [35,36]. [37,38,and39]].
b. Inadequacy of GBI and Uncertainty to its Continuity: The e. RPO: RPO compliance has not been strictly enforced or properly
industry is still recovering from the recent experience of withdrawal of monitored, directly affecting the REC mechanism. Although many
both AD and GBI. At the state level also there have been frequent projects have been registered under the REC and an increasing number
changes in policies on open access, cross subsidy surcharge, banking of RECs has been issued, the prices have been low with a majority of
and wheeling, group captive etc. These changes are often made with RECs being sold at the floor price or not sold at all [38,39].
utter disregard towards projects that have been built and invested in, f. Inadequate Forecasting Tools and Grid Management: In the
based on certain assumptions of policy. Such changes can make busi- existing regulatory framework, resource-rich states are expected to take
nesses completely unviable. These changes in policies also have a det- higher wind purchase obligation and buy power at a preferential tariff.
rimental impact on investors’ overall investment. Refusal to allow open That is why states like Tamil Nadu and Rajasthanare increasingly
access to generation projects within the state or a heavy cross subsidy finding it difficult to absorb higher quantum of wind power during the
burden on third-party sales are such state policies which are not pub- higher windy season and low demand period. It is partly due to out-
licised but are implemented. Such curbs have slowed down project dated and often inadequate infrastructure and in part due to a lack of
development at state level significantly [36,37]. penalization for non-compliance with forecasting and scheduling re-
c. Incoherent Resource Assessment: A number of state nodal quirements. In this regard, linking of the Southern Grid with the
agencies are not able to establish and maintain a technical library, a National Grid, freely allowing open access and third party sale within
data bank, or an information centre or collect and correlate information and outside the state/region as well as improving forecasting tools will
regarding wind energy potential. In the past, the National Institute of be critical for further harnessing the potential of wind power in the

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country [37]. farms could possibly qualify for Repowering [28].

g. Effect of Legal proceedings or Investigations: Anti-corruption c. Grid Integration: To achieve high penetrations of wind, one
practices and issues, commercial disputes, criminal or civil proceedings, would not only need strengthening and expansion of grid but also op-
and other integrity legislation have a negative effect on wind power erations and management would have to be completely revamped. The
projects. There is considerable damage to the company's reputation if responsibility to resolve grid problems rests both with the utilities and
there is violation in rules and regulation and could result in fines or the project developers and technology providers. In order to achieve the
penalties, the suspension or shutdown of ongoing operations. The time goals of scaled up capacity addition, these issues would have to be re-
period to integrate the legal proceedings results in delays or failure in solved in a phased manner. Renewable Energy incursion in the grid
completion of project [38,39]. does throw up some formidable problems to the grid in the lower
h. Uncertainty And Divergence In Feed-In Tariffs Approved By management on account of unpredictable wind power generation.
SERCs: Different states have different laws and regulations which im- However, an effective and efficient way of Grid Management can de-
poses inflexible standards and requirement and potentials liabilities. finitely offset the minor challenges posed by wind power. The elec-
Because of the difference in approach, there are wide variations in the tricity regulatory commission order should be strictly followed for
tariffs (as can be seen from Table 8), leading to uncertainty for the strengthening grid network connectivity and evacuation arrangement.
investors as well as non-viability of the projects in certain states in An accredited certify authority should approve all wind turbines for the
India. For instance, it is observed that feed-in tariffs of INR 3.50/kWh in compliance of grid regulation including power quality, low voltage
the state of Andhra Pradesh is low, leading to lack of capacity addition ride, active/reactive power control and other requirements as rules and
in the state in spite of the high wind potential in the state. It should be standards [23].
noted that the feed-in tariff in Andhra Pradesh based on the tariff d. Certainty of Support Policy: There is a need for uniform policies
regulation approved by CERC is INR 4.63/kWh as compared to Rs. across the country as much as possible and these policies should be
3.50/kWh approved by APERC. Further, the issue of longer control applicable over a reasonable period of time (5 years) to achieve fruitful
period and delay in RE tariff revisions at the state level are also a matter results. Changes in tariffs and any other charges should be transparent
of concern [37,38]. and there should be a long-term visibility.
i. Supply chain Issues: The supply chain issue plays a significant Wind projects should be considered as critical assets to minimise
role in retarding the development of wind energy sector. Wind power thefts and related damage as the installations are located in inhos-
developers have to stay focussed in identifying suppliers that can pro- pitable/sparsely populated far flung areas.
vide special equipment and quality material on time. The potential risk Wind power projects need to be exempted from obtaining “Consent
factors that may be the cause of crisis in supply chain are (1) delays and to Establish” from individual departments as the allotments are made
inflexibility of supply source, (2) systems information infrastructure by the single window Nodal Agency of the states. There is a specific
breakdown, (3) procurement and exchange rate risk, (4) receivables need for separate legislative enactment in the form of Renewable
and number of customers, (5) inventory holding cost, demand and Electricity Act in the quickest possible time [24].
supply uncertainty, (6) capacity, (7) service suppliers, (8) key compo- e. Availability of Land: The process of making land dedicated for
nent manufacturers, (9) procurement and environment. Managing windfarms should be made simpler. Also approvals and clearances such
supply chain risks are complicated because sometime risks are often as land title conversion should be examined in detail to find ways of
interconnected. Disruption caused in supply chain refers to the risks streamlining acquisition and usage of lands for the development of
which affect the movement of efficient process of information, mate- wind farms [36]. The following measure may be adopted for land
rials and products [36,39]. availability.

7. Measures to increase wind penetration • Easing of forest area land acquisition formalities and expediting the
same.
a. Resource Assessment: The correct assessment of wind resource • Exemption from wildlife zone applicability, migratory bird route
potential at higher heights, sustainability of the project over the de- limitations, air flight path restrictions. Not to be applicable for wind
signed life time, project feasibility will indirectly boost the energy power.
generation through wind. It is required to make sure the quality of the • No ceiling limitation for land acquisition under wind projects
data recorded at a particular site. The new commercially available re-
mote sensing instrument such as Sonic Detection and Ranging (SODAR) f. Central Procurement: One of the ways of enhancing capacity
and Light Detection and Ranging (LiDAR) can play a vital role in ac- addition in windfarms and also investments in sector is to identify large
curate assessment of wind resources at higher heights. Both SODAR and wind zones for wind parks or wind-solar hybrid parks that are initially
LiDAR work on the Doppler-shift principle. The SODAR send acoustic developed by the state government or in PPP mode. Electricity gener-
pulses into the atmosphere and LiDAR instrument transmits a light ated can be procured by a central government agency and then made
beam into the atmosphere. Both instruments receive the backscattered available to state governments. Such projects can be connected to
signals and compare the Doppler-shifted frequency between the trans- PGCIL. Wind parks or wind – solar hybrid parks with central procure-
mitted and the reflected signal [40]. The remote sensing technology has ment of electricity and initial development by the State government
proven its ability to measure wind characteristics [41,42]. could be one of the ways to minimise risks in wind power projects and
b. Repowering: Many of India's wind farms were set up during the to attract investments [28].
early 90s. Thus, the best wind power sites in India, older turbine models f. RPO Compliance and Real-time Monitoring: To encourage and
of smaller rotor diameters and lower hub heights with lattice structure attract the local population to adapt renewable energy it is necessary to
towers were used. New WTG models are able to reach higher efficiency focus on net metering policy and real-time monitoring. The installation
levels due to better rotor and airfoil designs. IEC Class III turbines with of Availability Based Tariff (ABT) meter with telecommunication fa-
larger rotor diameters and better control systems allow increased en- cility at substation can play a significant role in accurate metering. The
ergy capture and turbine reliability. Keeping all this in mind, an active important grid parameters on real time basis should be prudently sent
repowering strategy and policy is very much required in the country. to state/regional load centre. Binding of RPO compliance will im-
Repowering of old wind farms would lead to significantly increase in mediately result in much relief to a large number of IPPs and will pave
annual energy yield from the same patch of land where old wind tur- the way for more investments.
bines are functioning. It is assessed that Repowering potential is of the
order of 5000 MW and with the passage of time more and more wind • Enactment of renewable energy Act will mitigate difficulties of RPO
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implementation. Technology for providing the facility to carry out this study.
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