Right policy vital for wind power

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Indian wind energy growth is suffering from lack of policy and competitive environment, not from over resources or funding issues. Right policy framework and integration of south grid with national grid will make a big difference, and aid stronger growth of wind power, chief of the global wind energy body has pointed out.

“The fundamental constraint in India’s wind energy growth is lack of policy and competitive environment, not the other issues. Lapse of schemes, such as accelerated depreciation and GBI (generation-based incentive), have posed several challenges for the wind industry,” Steve Sawyer, director general of Global Wind Energy Council, said at the Wind Power India 2012 summit here on Wednesday. “Besides, policy push, linking up the southern grid with the rest of the grids will be one of the key things for the growth of the industry. Augmentation and upgradation of transmission lines will be a vital need for the industry,” he added.

Sawyer said, globally the costs in the wind power sector have come down significantly. “Like the scenario in three states in India, cost of wind power is cheaper than fossil fuel based power in countries such as Me­x­ico, Brazil, Argentina and in some parts of Ch­ina. Besides tec­h­nology boost, improvements in ter­ms of sites and resource testing have pushed the costs to lower levels,” he said.

Meanwhile, global wind power manufacturing sector has been battling with excess capacity. During the beginning of this year, there was a total manufacturing capacity of 85 gw, but the market demand was only about 45 gw. While some Chinese players have vanished, European market is also shrinking. “With market becoming very tough for standalone turbine markers, 2013 year may see a consolidation in this segment,” he stated.

Predicting capacity addition trend, he said, 2012 would be a good year for wind power capacity addition, while 2013 will be a tough year globally. “Unless China, India, Brazil, Mexico and South Africa achieve large growth, market will be very tough,” he added.

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