The initial euphoria generated out of the announcement had dissipated

Expressing concern over lack of progress on the implementation of generation-based incentive (GBI) for wind energy, the Indian Wind Turbine Manufacturers Association (IWTMA) has called upon the Central government to take steps for early implementation of its move, announced in the Union Budget.

The initial euphoria generated out of the announcement had dissipated and there was virtually no progress. Making this point, Ramesh Kymal, chairman of the IWTMA, reminded journalists recently that at the national level, capacity addition in the last financial year (2012-2013) was 1,700 MW against around 3,000 MW during 2011-2012. Tamil Nadu saw addition of about 200 MW against around 1,100 MW.

In many States [Tamil Nadu excluded], Renewable Purchase Obligations (RPO) were not being strictly enforced.

Explaining how the wind energy sector was driven by public policies, he said if the policies were not “correct, robust and long-term,” some manufacturing units might have to be closed down, he said.

As regards the wind energy sector in Tamil Nadu, Mr Kymal and D.V.Giri, secretary general, said the levy of transmission charges or cross-subsidy charges on wind energy producers for captive use or third party sale, as stipulated in the previous year’s tariff order of the Tamil Nadu Electricity Regulatory Commission, had hurt the sector badly as it resulted in the reduction of their revenue by approximately Rs.1.25 per unit.

Mr Giri hastened to add that the matter was now before the Appellate Tribunal for Electricity.