Evaluating the Role of State Incentives in the Deployment of Wind Energy in India

Abstract

Since 1991, demand for energy in India has grown considerably. Both governments, i.e. central and state place an array of incentives like Feed in Tariff (FIT), Captive Consumption (CG) and Renewable Purchase Obligation (RPO) at the state level, And Generation Based Incentive (GBI) and other tax incentives at central level to boost incentive in the renewable energy sector. This study empirically examines the role of above mentioned state level incentives in the development of the wind energy sector across different states. This paper use technique of Fixed Effect Panel Data Modelling of econometeric analysis on the state level data of Twently six Indian states from 2001 to 2011.The study reveals that on an average RPO is not a significant predictor for the wind energy deployment and over the period negatively affects installation. However other incentives, FIT and CG are significantly affecting wind energy development.