India wind joy as AD restored
The Indian government today said it would revive Accelerated Depreciation (AD) for the wind industry, in a long-hoped-for boost to the sector.
Finance minister Arun Jaitley confirmed the restoration of the incentive today as part of the debate on the national budget.
AD was one of the key government incentives to drive investment in India’s wind-power growth until it was scrapped in 2012, along with the equally popular generation based incentive (GBI).
AD allowed wind farm owners to depreciate 80% of their investment in the first year of a project’s operation, and its paring back to a standard 15% was seen as a big blow.
GBI was brought back in 2013 as it became clear to the Indian government how much the removal of the two incentives had knocked the stuffing out of the wind sector.
Installations in the country shrank by 47% in 2012 following the removal of the two measures.
Bringing back AD will add to a budget already seen as generally positive for the wind industry.