India to boost wind power capacity

India hopes to almost double its wind power generation to 10,000 megawatts by the end of 2007 to meet rising energy demand and reduce its reliance on coal and crude oil, Vilas Muttemwar, minister for non-conventional energy sources said. Electricity produced from wind is currently costlier than that from gas, thermal or hydro plants, but tax breaks, lower equipment import duties, and cheap loans keep prices competitive. With the subsidies, analysts say the cost of wind generation ranges from Rs2.50 to 3.50 (US$ 0.05-0.08) per unit, or kilowatt-hour, on par with thermal electricity generation. Power produced by old hydro-based units costs below one rupee. He estimates that a 200-kilowatt wind turbine replacing a thermal power plant would save 120 to 200 tons of coal. (August 2, 2006)