New Delhi: Wind power major Suzlon Energy Ltd plans to augment the power generation capacity at its wind farm in the Dhule Sangli area of Maharashtra by 30MW to meet demand from user companies. The investment of Rs180 crore will be borne by the firms that draw the power.
“The additional capacity will be set up at our existing project site, which already has a present power generation capacity of 600MW. The investment will be made by companies for whom we are setting up this capacity,” a company executive, who did not wish to be identified, said. He declined to comment further.
Suzlon will develop the wind farm with all necessary infrastructure, including land, with financial assistance from these companies. The investors in turn will get wind farm ownership against which they can claim tax credits for using an eco-friendly system of power generation. Some existing customers include Ajanta Group, Bajaj Group and John Deere.
“The company has identified some more land with better wind velocity where this additional capacity would be set up. The tariff for power generated from the project would be higher than the normal tariff and would be evacuated to the grid,” said Vikram Apte, senior vice-president, Feedback Ventures Pvt. Ltd, a project management company.
Suzlon, the world’s fourth largest maker of wind turbines, has a combined manufacturing base of 2,700MW of annual capacity, and is undertaking an expansion programme to expand its base to 4,200MW of capacity by January.
Industry analysts say wind power generation is an area of growing opportunity as the national tariff policy, a blueprint for energy procurement, has mandated that all states must get 5% of their energy from renewable sources in five years. Some state electricity regulatory commissions, such as those in Gujarat and Maharashtra, have already fixed procurement standards from renewable energy sources.
Wind energy “will yield carbon credits, tax breaks and depreciation benefits for the companies, and a likely revenue of Rs3-4 per unit,” Kuljit Singh, partner, Ernst & Young, had earlier said.
Under Section 80-IA of the Income-Tax Act, companies setting up wind energy projects get tax breaks for up to 10 years, and depreciation benefits of up to 80% of the investment in the very first year of the project’s operation.
Of the total installed capacity of 130,000MW in the country, wind-based power constitutes only 4.8%. Although India has a wind energy potential of 45,000MW, its installed wind power capacity is only 6,280MW. The ministry of non-conventional energy resources is projecting a threefold capacity addition to around 18,000MW by 2012.