India

India

Rajasthan seeks to revive sector with new wind and hybrid policy

Rajasthan’s chief minister recently unveiled a new wind and hybrid energy policy that has been welcomed by the industry.

Rajasthan has over 4GW of wind capacity, but development has been halted since the introduction of federal auctions (pic: WikiCommons / Ashwin Kumar)
Rajasthan has over 4GW of wind capacity, but development has been halted since the introduction of federal auctions (pic: WikiCommons / Ashwin Kumar)

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Rajasthan has an installed capacity base of over 4GW under India's old feed-in tariff regime.

But it has been unable to add any large new capacity after the introduction of federal auctions in early 2017 because none of the bidders had projects planned for Rajasthan.

The state also did not have any state-level framework for new wind power resulting in a near-complete shutdown in development.

In an effort to revive sector development, the new government recently released its Rajasthan Wind and Hybrid Energy Policy 2019.

The policy targets 2GW of new wind capacity by 2024-25 under reverse bidding by the state's utilities with an additional 2GW by 2024-25 under private contracts.

It also allows repowering for projects that have less than 1MW turbine capacity and are more than ten years old.

Hybrid projects are also included in Rajasthan's new policy. It proposes a target of 2GW for new wind-solar hybrids, 500MW for wind-solar-storage hybrids and 1GW for hybridisation of existing solar and thermal plants with wind power by 2024-25.

Rajasthan is also proposing incentives for wind turbine manufacturers including waiver of stamp duty and 50% concession for industrial land and 90% exemption from state taxes.

The industry has responded positively to Rajasthan's plan to revive the state's wind sector, especially with the potential for private contracts.

Adani Green Power, one of the country's major wind players, has already committed to setting up 50MW capacity in the state after the announcement of the policy.

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