Page 21 - Money in Energy
P. 21
Money in energy -Investment Opportunities and risks 2010
strategic and operational incentives provided by the government of India (or
intended to be provided soon) for the renewable energy industry are:
1. 80 percent accelerated depreciation for renewable energy investments
2. Relief in customs duty, excise duty and sales tax
3. Soft loans
4. Generation-based incentives for solar and wind power projects
5. Government policies covering wheeling, banking, buy-back, and third-
party sale of power
6. State Electricity Regulatory Commissions (SERC) have been mandated to
promote RE, through renewable purchase obligations, which require
discoms to source up to 10 per cent of their power from RE sources.
7. The key wind energy incentives include a provision for 80 per cent
-year tax holiday, income
tax waiver on power sold to utilities and favorable tariffs.
8. Projects that do not claim accelerated depreciation benefits are entitled
to generation-based incentives (GBI) that provides INR0.5/kWh of power
sold, for Independent Power Producer (IPPs) with capacity >5 MW
9. India offers several subsidies to solar power systems, such as solar
lanterns, home lighting systems, etc., and GBI of up to INR12/kWh for
power plants
10. For SHP projects, incentives include concessions on customs duty, 10-year
tax holiday and other state-level incentives including sales and electricity
tax exemptions and preferential tariffs. The incentives also include capital
subsidies.
11. Incentives for biomass energy include accelerated depreciation, import
duty concessions, excise duty exemption and a 10-year tax holiday. The
incentives also include capital subsidies. Various export incentives have
made India a key player in the global wind turbine generator (WTG) and
solar PV cells market
21 Etree Projects Consultants Pvt Ltd.
strategic and operational incentives provided by the government of India (or
intended to be provided soon) for the renewable energy industry are:
1. 80 percent accelerated depreciation for renewable energy investments
2. Relief in customs duty, excise duty and sales tax
3. Soft loans
4. Generation-based incentives for solar and wind power projects
5. Government policies covering wheeling, banking, buy-back, and third-
party sale of power
6. State Electricity Regulatory Commissions (SERC) have been mandated to
promote RE, through renewable purchase obligations, which require
discoms to source up to 10 per cent of their power from RE sources.
7. The key wind energy incentives include a provision for 80 per cent
-year tax holiday, income
tax waiver on power sold to utilities and favorable tariffs.
8. Projects that do not claim accelerated depreciation benefits are entitled
to generation-based incentives (GBI) that provides INR0.5/kWh of power
sold, for Independent Power Producer (IPPs) with capacity >5 MW
9. India offers several subsidies to solar power systems, such as solar
lanterns, home lighting systems, etc., and GBI of up to INR12/kWh for
power plants
10. For SHP projects, incentives include concessions on customs duty, 10-year
tax holiday and other state-level incentives including sales and electricity
tax exemptions and preferential tariffs. The incentives also include capital
subsidies.
11. Incentives for biomass energy include accelerated depreciation, import
duty concessions, excise duty exemption and a 10-year tax holiday. The
incentives also include capital subsidies. Various export incentives have
made India a key player in the global wind turbine generator (WTG) and
solar PV cells market
21 Etree Projects Consultants Pvt Ltd.
