MNRE draft policy to repower wind energy industry

Draft repowering policy announced by the Ministry of New and Renewable Energy (MNRE) is expected to re-energise the wind energy industry. With more height and better efficient windmills, the industry is expected to attract Rs. 40,000 crore investment.

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The Ministry of New and Renewable Energy (MNRE) is planning to re-invigorate old wind power plants with more height and higher efficiency. It aims to accelerate the slowing wind energy industry in the country and attract more investment. According to a report by research agency CRISIL, this policy announcement is expected to draw in investment worth Rs 40,000 crore over period of 3-5 years. 

The aggregate installed wind capacity in the country increased from about 13 GW in 2010 to 34 GW by 2018. The previously installed windmills have a hub height less than 100 metres and narrower turbines of less than 1.5 MW capacity, which generate less energy per unit of capex. The new windmills to be installed can operate at hub heights over 150 metres and will generate more electricity per unit of machine capex using turbines of over 3 MW capacity. 

“This (investment) may lead to replacement of 5 GW of old windmills with new wind power plants having 2x more generation ability. Their viability looks good, because such projects can generate double-digit returns at tariffs of Rs 4 per unit..,” said Ankit Hakhu, Director, of CRISIL Ratings.