India: New PM Modi Delivering For Wind

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Richard Heap
November 17, 2014
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India: New PM Modi Delivering For Wind

It is six months since the people of India elected Narendra Modi as prime minister. When he was elected he became arguably the most pro-renewables leader of any large nation.

This is no idle statement. Modi was chief minister of the region of Gujarat from 2001 until May 2014 — when he became prime minister — and during that time he led a renewables revolution. Official data shows that wind generation capacity grew by more then tenfold in the final six years of his tenure; and, in his pre-election campaigning, he promised an “energy revolution” for India.

That means more wind and solar. So, six months on, has he delivered? Is he opening up new opportunities for investors and developers to get involved in wind projects in India?

It is, of course, too early to judge on results. He is only six months in to leading a country of 1.3billion people, but the early indications are that he is delivering on his promise.

The Indian government has identified that India’s energy network needs huge investment. The government says that the power generation and transmission network is set to require $250bn over the next five years, of which $100bn is set to be in renewables.

So far, it has brought in German development bank KfW to support an $8bn upgrade of the grid to handle a more than doubling of renewables capacity by 2022. The idea is to help the country to cope with the intermittent supply from wind and solar farms.

It has also backed wind as a way to achieve its goal of a secure and sustainable energy network. The government has set a target of 100GW of new capacity in India in the next decade. This would be a fivefold increase on capacity of 20GW at the end of 2013.

And it is currently drawing up a National Offshore Wind Energy Policy. This did not stop it committing last month to building the country’s first offshore wind project, of 100MW.

All of this bodes well for developers, investors and consultants who are looking to get more involved in the Indian market. Modi is delivering what the market expected him to.

Then there are the technical changes. For example, in July the government reinstated the Indian accelerated depreciation schemefor wind, which was withdrawn two years ago.

This provides subsidies for setting up wind-generated power plants. Investors canwrite down 80% of a project cost as depreciation when calculating taxable profits. Wind experts have estimated that this would boost annual wind farm installations by 1GW.

It is this last element that we find most heartening. It is easy for politicians to talk in grand targets about how much more capacity they want, but often they fail when it comes to putting in place the legislative framework needed to achieve those targets.

That doesn’t appear to be the case with Modi. He seems to have both a vision and a plan to realise it. We cannot yet judge his full impact — but so far, so good.

It is six months since the people of India elected Narendra Modi as prime minister. When he was elected he became arguably the most pro-renewables leader of any large nation.

This is no idle statement. Modi was chief minister of the region of Gujarat from 2001 until May 2014 — when he became prime minister — and during that time he led a renewables revolution. Official data shows that wind generation capacity grew by more then tenfold in the final six years of his tenure; and, in his pre-election campaigning, he promised an “energy revolution” for India.

That means more wind and solar. So, six months on, has he delivered? Is he opening up new opportunities for investors and developers to get involved in wind projects in India?

It is, of course, too early to judge on results. He is only six months in to leading a country of 1.3billion people, but the early indications are that he is delivering on his promise.

The Indian government has identified that India’s energy network needs huge investment. The government says that the power generation and transmission network is set to require $250bn over the next five years, of which $100bn is set to be in renewables.

So far, it has brought in German development bank KfW to support an $8bn upgrade of the grid to handle a more than doubling of renewables capacity by 2022. The idea is to help the country to cope with the intermittent supply from wind and solar farms.

It has also backed wind as a way to achieve its goal of a secure and sustainable energy network. The government has set a target of 100GW of new capacity in India in the next decade. This would be a fivefold increase on capacity of 20GW at the end of 2013.

And it is currently drawing up a National Offshore Wind Energy Policy. This did not stop it committing last month to building the country’s first offshore wind project, of 100MW.

All of this bodes well for developers, investors and consultants who are looking to get more involved in the Indian market. Modi is delivering what the market expected him to.

Then there are the technical changes. For example, in July the government reinstated the Indian accelerated depreciation schemefor wind, which was withdrawn two years ago.

This provides subsidies for setting up wind-generated power plants. Investors canwrite down 80% of a project cost as depreciation when calculating taxable profits. Wind experts have estimated that this would boost annual wind farm installations by 1GW.

It is this last element that we find most heartening. It is easy for politicians to talk in grand targets about how much more capacity they want, but often they fail when it comes to putting in place the legislative framework needed to achieve those targets.

That doesn’t appear to be the case with Modi. He seems to have both a vision and a plan to realise it. We cannot yet judge his full impact — but so far, so good.

It is six months since the people of India elected Narendra Modi as prime minister. When he was elected he became arguably the most pro-renewables leader of any large nation.

This is no idle statement. Modi was chief minister of the region of Gujarat from 2001 until May 2014 — when he became prime minister — and during that time he led a renewables revolution. Official data shows that wind generation capacity grew by more then tenfold in the final six years of his tenure; and, in his pre-election campaigning, he promised an “energy revolution” for India.

That means more wind and solar. So, six months on, has he delivered? Is he opening up new opportunities for investors and developers to get involved in wind projects in India?

It is, of course, too early to judge on results. He is only six months in to leading a country of 1.3billion people, but the early indications are that he is delivering on his promise.

The Indian government has identified that India’s energy network needs huge investment. The government says that the power generation and transmission network is set to require $250bn over the next five years, of which $100bn is set to be in renewables.

So far, it has brought in German development bank KfW to support an $8bn upgrade of the grid to handle a more than doubling of renewables capacity by 2022. The idea is to help the country to cope with the intermittent supply from wind and solar farms.

It has also backed wind as a way to achieve its goal of a secure and sustainable energy network. The government has set a target of 100GW of new capacity in India in the next decade. This would be a fivefold increase on capacity of 20GW at the end of 2013.

And it is currently drawing up a National Offshore Wind Energy Policy. This did not stop it committing last month to building the country’s first offshore wind project, of 100MW.

All of this bodes well for developers, investors and consultants who are looking to get more involved in the Indian market. Modi is delivering what the market expected him to.

Then there are the technical changes. For example, in July the government reinstated the Indian accelerated depreciation schemefor wind, which was withdrawn two years ago.

This provides subsidies for setting up wind-generated power plants. Investors canwrite down 80% of a project cost as depreciation when calculating taxable profits. Wind experts have estimated that this would boost annual wind farm installations by 1GW.

It is this last element that we find most heartening. It is easy for politicians to talk in grand targets about how much more capacity they want, but often they fail when it comes to putting in place the legislative framework needed to achieve those targets.

That doesn’t appear to be the case with Modi. He seems to have both a vision and a plan to realise it. We cannot yet judge his full impact — but so far, so good.

It is six months since the people of India elected Narendra Modi as prime minister. When he was elected he became arguably the most pro-renewables leader of any large nation.

This is no idle statement. Modi was chief minister of the region of Gujarat from 2001 until May 2014 — when he became prime minister — and during that time he led a renewables revolution. Official data shows that wind generation capacity grew by more then tenfold in the final six years of his tenure; and, in his pre-election campaigning, he promised an “energy revolution” for India.

That means more wind and solar. So, six months on, has he delivered? Is he opening up new opportunities for investors and developers to get involved in wind projects in India?

It is, of course, too early to judge on results. He is only six months in to leading a country of 1.3billion people, but the early indications are that he is delivering on his promise.

The Indian government has identified that India’s energy network needs huge investment. The government says that the power generation and transmission network is set to require $250bn over the next five years, of which $100bn is set to be in renewables.

So far, it has brought in German development bank KfW to support an $8bn upgrade of the grid to handle a more than doubling of renewables capacity by 2022. The idea is to help the country to cope with the intermittent supply from wind and solar farms.

It has also backed wind as a way to achieve its goal of a secure and sustainable energy network. The government has set a target of 100GW of new capacity in India in the next decade. This would be a fivefold increase on capacity of 20GW at the end of 2013.

And it is currently drawing up a National Offshore Wind Energy Policy. This did not stop it committing last month to building the country’s first offshore wind project, of 100MW.

All of this bodes well for developers, investors and consultants who are looking to get more involved in the Indian market. Modi is delivering what the market expected him to.

Then there are the technical changes. For example, in July the government reinstated the Indian accelerated depreciation schemefor wind, which was withdrawn two years ago.

This provides subsidies for setting up wind-generated power plants. Investors canwrite down 80% of a project cost as depreciation when calculating taxable profits. Wind experts have estimated that this would boost annual wind farm installations by 1GW.

It is this last element that we find most heartening. It is easy for politicians to talk in grand targets about how much more capacity they want, but often they fail when it comes to putting in place the legislative framework needed to achieve those targets.

That doesn’t appear to be the case with Modi. He seems to have both a vision and a plan to realise it. We cannot yet judge his full impact — but so far, so good.

It is six months since the people of India elected Narendra Modi as prime minister. When he was elected he became arguably the most pro-renewables leader of any large nation.

This is no idle statement. Modi was chief minister of the region of Gujarat from 2001 until May 2014 — when he became prime minister — and during that time he led a renewables revolution. Official data shows that wind generation capacity grew by more then tenfold in the final six years of his tenure; and, in his pre-election campaigning, he promised an “energy revolution” for India.

That means more wind and solar. So, six months on, has he delivered? Is he opening up new opportunities for investors and developers to get involved in wind projects in India?

It is, of course, too early to judge on results. He is only six months in to leading a country of 1.3billion people, but the early indications are that he is delivering on his promise.

The Indian government has identified that India’s energy network needs huge investment. The government says that the power generation and transmission network is set to require $250bn over the next five years, of which $100bn is set to be in renewables.

So far, it has brought in German development bank KfW to support an $8bn upgrade of the grid to handle a more than doubling of renewables capacity by 2022. The idea is to help the country to cope with the intermittent supply from wind and solar farms.

It has also backed wind as a way to achieve its goal of a secure and sustainable energy network. The government has set a target of 100GW of new capacity in India in the next decade. This would be a fivefold increase on capacity of 20GW at the end of 2013.

And it is currently drawing up a National Offshore Wind Energy Policy. This did not stop it committing last month to building the country’s first offshore wind project, of 100MW.

All of this bodes well for developers, investors and consultants who are looking to get more involved in the Indian market. Modi is delivering what the market expected him to.

Then there are the technical changes. For example, in July the government reinstated the Indian accelerated depreciation schemefor wind, which was withdrawn two years ago.

This provides subsidies for setting up wind-generated power plants. Investors canwrite down 80% of a project cost as depreciation when calculating taxable profits. Wind experts have estimated that this would boost annual wind farm installations by 1GW.

It is this last element that we find most heartening. It is easy for politicians to talk in grand targets about how much more capacity they want, but often they fail when it comes to putting in place the legislative framework needed to achieve those targets.

That doesn’t appear to be the case with Modi. He seems to have both a vision and a plan to realise it. We cannot yet judge his full impact — but so far, so good.

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Not a member yet?

Become a member of the 6,500-strong A Word About Wind community today, and gain access to our premium content, exclusive lead generation and investment opportunities.