India to add up to 2,300 MW wind capacity in FY15, says Icra

As much as 2,300 MW of wind capacity is expected to be added in 2014-15, mainly supported by reintroduction of accelerated depreciation and sizable investments by large independent power producers, the Indian credit ratings agency (Icra) said.

Annual capacity addition during the current financial year is expected to improve to about 2,200-2,300 MW, implying growth of about 10 per cent over the previous year, which is supported by reintroduction of accelerated depreciation (AD) benefit since July 2014 and sizable investments under implementation by large players in IPP segment, the firm said.

According to Icra, during the first nine months of 2014-15, wind based capacity addition stood at 1,329 MW, a significant increase of 21 per cent compared to the same period last fiscal.

Historically, AD benefit has been a key driver for capacity addition by corporate and financial investors (that is non-IPP segment) and with the reintroduction of AD benefit in July last year, Icra expects incremental annual demand of about 800 MW from such investors, the release said.

Wind based capacity addition during FY2014 improved by 23 per cent to 2,084 MW year-on-year basis which was also supported by reintroduction of generation based incentive (GBI) in September, 2013.

As of December 31, 2014, the total installed
 wind energy based capacity stood at 22,465 MW, constituting nine per cent of the overall installed capacity in the country and within the renewable energy segment, wind segment continues to occupy a dominant share of 66 per cent, the release said.

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