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Karnataka wind energy, Karnataka Wind policies, Karnataka wind projects, Wind energy incentives in Karnataka, sites for wind energy in karnataka, ppa for wind energy,



* a very recent development has brought fresh cheer to the Wind industry—the possibility of reinstatement of the other benefit, viz., accelerated depreciation.




This is said to be due to the efforts of the Indian Wind Power Association. The Association’s Chairman, K Kasturirangan, met the Union Finance Minister, P Chidambaram, a few days back in Coimbatore, to follow up on his own previous presentation to the Ministry of Finance.


“I am confident that the Government will bring back accelerated depreciation,” Kasturirangan told Business Line today. The Indian Wind Power Association has 1,500 members.




Dr K Venkatachalam, Chief Advisor, Tamil Nadu Spinning Mills Association (TASMA) fully shares Kasturirangan’s optimism. Recently, when asked if TASMA members would look at solar power projects with accelerated depreciation in mind, he said that he was confident that AD would be given for wind projects also. 







Welspun Energy to invest Rs 5,675 crore in wind power projects in Karnataka

Suzlon to build 3,000-MW wind farm in Karnataka


*Acciona Bullish on Indian Wind Energy Sector, Commissions 56-MW Project



Spanish wind energy giant Acciona recently announced the commissioning of its largest project in India. The company inaugurated a 56-MW wind project in India’s southern state of Karnataka. With the commissioning of this project, Acconia’s total wind generation capacity in India has reached 85 MW. The company plans to commission many more projects soon.

The project is expected to generated over 1,320,000 MWh of electricity each year and offset about 129,000 tonnes of carbon emissions each year. The electricity generated by the project is enough to power about 35,000 Indian homes.

Acciona has included its three operational wind parks in India under the Clean Development Mechanism (CDM) envisaged in the Kyoto Protocol against climate change, which guarantees the economic viability of projects through the trading of emission rights derived from renewable generation.

Source: Clean Technica (



New WindPower project at Harapanahalli



The Cabinet will allott 115 acres land to Sarjan Realties Ltd to set up a wind farm at Harapanahalli in Davangere district.

The land  is on a 30-year lease. 

The project, cleared by state energy department, is to produce 34 MW of power initially and later scale it up to 77.4 MW.



Lancos Wind Assets in Great Demand

Lanco Infratech has licenses to generate 5000MW using wind turbines and has acquired land stretching across Karnataka, A.P. and T.N.


* Karnataka wind energy sector sees turnaround oct 23, 2011



Gamesa to become a big player in Wind

Gamesa will be investing 700 crores in wind energy annually.Has installed base of 563MW across states including, Andhra Pradesh, Gujarat, Karnataka, Maharashtra, Rajasthan, Tamil Nadu and Madhya Pradesh.


Infosys, India's second largest IT exporter, has a green mandate too. 

A clutch of energy experts - Rajendra Pachauri, Director-General of TERI, SL Rao, the former Chairman of the Central Electricity Regulatory Commission, Harish Hande, MD of sustainable energy company Selco and Kris Gopalakrishnan, executive chairman of Infosys - had gathered to talk about India's energy challenges at the Infosys   campus.

Gulbarga in N.Karnataka is to become the scene of action.


It is estimated that 2% of the solar radiation incident on Earth is converted to kinetic energy of wind. The energy content of solar radiation impacting the surface of Earth is believed to be 1000 watts per square metre. Thus the total solar energy impacting the state of Karnataka is 1920000 MW. Two percent of this energy, 38400 MW, is converted to kinetic energy of wind. Generation of electrical energy from this source requires land for building wind turbines. Such turbines can be built only on uninhabited lands or those that are not required for commercial purposes or residential purposes or for cultivation of crops. Assuming further that only 0.05% of the land area may fall in this category (lands unfit for any land-based productive activity) the gross potential in the State based on the land area can be 2000 MW. However, assessed potential is worked out to be 1662 MW.

There are many small wind farms in Karnataka, making it one of the states in India which has a high number of wind mill farms. Chitradurga, Gadag are some of the districts where there are a large number of Windmills. Chitradurga alone has over 20000 wind turbines.

The 13.2 MW Arasinagundi (ARA) and 16.5 MW Anaburu (ANA) wind farms are ACCIONA’S first in India. Located in the Davangere district (Karnataka State), they have a total installed capacity of 29.7 MW and comprise a total 18 Vestas 1.65MW wind turbines supplied by Vestas Wind Technology India Pvt. Ltd.

The ARA wind farm was commissioned in June 2008 and the ANA wind farm, in September 2008. Each facility has signed a 20-year Power Purchase Agreement (PPA) with Bangalore Electricity Supply Company (BESCOM) for off-take of 100% of the output. ARA and ANA are Acciona’s first wind farms eligible for CER credits under the Clean Development Mechanism (CDM).

ACCIONA is in talks with the World Bank for The Spanish Carbon Fund which is assessing participation in the project as buyer for CERs likely to arise between 2010 and 2012. An environmental and social assessment has been conducted as part of the procedure and related documents have been provided. These are included below, consistent with the requirement of the World Bank's disclosure policy


The break-up of projects implemented in prominent wind potential states (as on March 31, 2011) is as given below

State-wise Wind Power Installed Capacity In India 
State Gross Potential (MW) Total Capacity (MW) till 31.03.2011
Andhra Pradesh






Kerala 1171 32.8
Madhya Pradesh 1019 275.5
Maharashtra 4584 2310.7



Rajasthan 4858 1524.7
Tamil Nadu 5530 5904.4
Others   4
(All India)
48,561 14,158

*Recently revised by state Government to 5200 MW



State-Wise Cumulative Wind Generation Data in (BU)

(As on 31.01.2011)


S. No. Name of the State Upto 2005 2005-06 2006-07 2007-08 2008-09 2009-10 Up to Jan. 2011 Cumu-lative
1 Andhra Pradesh 0.721 0.079 0.111 0.101 0.333 .106 .067 1.518
2 Gujarat 1.332 0.286 0.455 0.851 2.104 2.988 2.309 10.325
3 Karnataka 1.409 0.935 1.397 1.840 1.723 2.895 2.362 12.561
4 Kerala 0.047 0.000 0.000 0.000 0.000 .065 .059 0.171
5 Madhya Pradesh 0.300 0.030 0.070 0.069 0.003 .082 .039 0.593
6 Maharashtra 2.650 0.790 1.714 1.804 2.207 2.778 2.368 14.311
7 Rajasthan 0.494 0.427 0.532 0.682 0.758 1.127 1.049 5.069
8 Tamil Nadu 11.970 3.444 5.268 6.066 6.206 8.146 8.017 49.117
  Total 18.925 5.991 9.547 11.413 13.334 18.187 16.270 93.665


Karnataka wind power resource map


Karnataka Wind Energy Resource Map to identify potential wind farm sites





Installed Capacity per state (MW)

State March 2011

March 2010

March 2009

March 2008

March 2007

March 2006

Tamilnadu 5904.4 4907 4304.5 3873.4 3492.7 2894.6
Karnataka 1730 1473 1327.4




Maharashtra 2310.8 2078 1938.9



Rajasthan 1524.8 1088 738.4




Andhra Pradesh 200.2 236 122.5



Madhya Pradesh 275.5 229 212.8 187.7


Kerala 32.8 28 27.0 10.5


Gujarat 2175.5 1864 1566.5 1252.9



Others 0 4 1.1 1.1 1.1 1.1
Total 14158 11807 10242.3 8754.0








Wind Energy Potential in Karnataka


Latitude / Longitude

Wind speed 

 Power Density at 30m, m/s W/m2


14°29’N 76°50’E



B.B. Hills

13°26’N 75°45’E




16°20’N 74°30’E




13°20’N 76°40’E




6°07’N 74°47’E




14°58’N 75°54’E




 15°54’N 76°02’E




15°55’N 74°43’E




17°05’N 75°40’E




14°10’N 76°22’E




14°11’N 76°25’E




15°45’N 74°35’E




14°30’N 75°45’E




14°13’N 76°27’E




15°52’N 75°55’E




16°15’N 75°44’E



Sogi A

14°55’N 75°59’E



Sogi B

14°54’N 75°59’E









1.  Vision


To harness Green and clean Renewable Energy Sources in the state for environment benefits and Energy Security. To initiate energy efficiency measures in all sectors for sustainable growth.




1.    To enhance the contribution of environment friendly Renewable Energy sources, to the socio-economic development and supplement rural energy needs through speedy and expeditious commissioning of sustainable Renewable Energy projects.

2.    To create conditions conducive to private/ public/community participation and investment in Renewable Energy power projects.

3.    To achieve commercial viability and expeditiously operationalize the Renewable Energy Projects

4.    To enhance the contribution of Renewable Energy in the total installed capacity of the state from 2400 MW to about 6600MW by 2014.

5.    To conserve 7901 MU (900 MW) by 2014 through the Energy Efficiency & Energy Conservation measures in all sectors.



3. Objectives:


1.    Development, propagation and promotion of Renewable Energy sourcesand Technologies.

2.    Development of Eco-friendly Projects and Harnessing of Natural Resources to avail Green Power.

3.    Acceleration of identification, development and implementation of new Renewable Energy projects.

4.    Encourage the industries, in addition to sugar industry, with cogeneration potential to set up co-gen plants expeditiously.

5.    Provision of "single window" service for technical consultation, sources of finance and project clearance.

6.    Decentralized and micro level power generation through renewable energy sources to provide energy supply to agriculture, industry, commercial and household sector.

7.    Creation of suitable environment for private sector participation in Renewable Energy Power Generation.

8.    R&D, Publicity and Popularization of Renewable Energy.

9.    To establish linkages with national and international institutions for active collaboration in development, demonstration and commercialization of new and emerging Renewable Energy technologies.

10.To Take Concrete steps for Energy Conservation and Energy Efficiency and Clean Development Mechanism (CDM).


4. Scope of the Policy:The policy will be applicable for the development of all sectors of Renewable energy Sources including Energy Conservation and Energy Efficiency. The policy is valid for a 5 year period up to 2014. This policy supersedes all the policy guidelines/instructions issued in this behalf from time to time. The provisions contained in this Renewable Energy Policy will be applicable to all the Renewable Energy Projects. This policy will be applicable to all the Renewable Energy projects sanctioned prior to the commencement of the policy and those Renewable Energy projects in the process of development including already commissioned Renewable Energy projects. Under the policy, Government has the right to approve capacity allotment Government Order essential to become eligible for availing the benefits for the renewable energy projects. Under this policy, it is obligatory to sell the electricity generated from the Renewable Energy Projects commissioned to the respective geographical ESCOMs in which the projects located, at the Tariff determined by KERC, under a long term Power purchase agreement. The policy covers the Energy Efficiency and Energy Conservation along with Demand Side Management (DSM) and Clean Development Mechanism (CDM) implementation. Once the target fixed under this policy is achieved, a new policy shall be launched. For Cogeneration in Sugar industries a separate policy will be brought out by the Cooperation department and the Industries and Commerce department for comprehensive development of the sector. Similarly for Bio-Fuels the Bio-Fuel Board will come out with a separate policy.




5. Goals:The policy sets twin goals of (i) Renewable Energy power Generation and (ii) Energy Conservation & Energy Efficiency.



5.(i) Renewable Energy power Generation:Presently Renewable Energy Sources contribute about 4600 MU of energy per annum (11.5 %) of the total 40000 MU available from various installed capacities (8600 MW including share from CGS) in the state. The energy demand is projected to attain 10 % growth. Committed to the green energy the state has mandated, vide GO No EN 216   NCE 2006 dated 2.3.2007, to enhance the upper limit share of Renewable Energy mix to 20% in the total quantum of energy. Over the next five years the energy consumption is anticipated to be around 64000 MU per annum. To attain 20 % Renewable Energy mix the Renewable Energy sources required to contribute 12800 MU by 2014. This sets the tone for doubling the installed capacity of the various RE sources combined together. Considering the average plant load factor of various Renewable Energy sources (25 %) this necessitates the cumulative Renewable Energy capacity addition of about 5850 MW by 2014.  However, the policy has a goal of commissioning 4200 MW additional capacity with accumulative Renewable Energy capacity addition of 6600 MW by 2014



In the above background the Green Power option for Karnataka are as follows.



1.    Wind power projects.

2.    Mini, Micro and Small Hydropower projects (up to 25 MW).

3.    Co-generation in sugar and other Industries.

4.    Biomass and Biogas projects.

5.    Solar photovoltaic and Solar Thermal Power Generation. Solar Hybrid Systems and Solar applications in Domestic and Industrial Sector. 

6.    Municipal Solid waste, Industrial Liquid/Solid Waste Power Projects including Bio-fuels & Bio Diesel Projects.

7.    Tidal Wave Energy/Geo-Thermal Energy.

8.    Other Renewable Energy Sources not spelt above, viz: synthetic Fuels, Heat recovery Systems in various Industries.













For the various above Renewable Energy sources there are proven technologies. The targets for significant Renewable Energy sectors are set as below.


Installed Capacity & Proposed Targets for RE Generation, 

2009 -14




RE Source

Potential MW

Installed capacity MW

Capacity addition by 2014 MW




Wind Power








Mini and Small Hydro





Cogeneration in Sugar Industry










Waste to Energy















6. Year wise Renewable Energy Target and Capital investment 2009 to 2014:


The year wise target for different Renewable Energy sources and the investment necessary during the policy period is given below




RE Source

Target MW

Year wise proposed capacity addition

Likely total investment

(Rs crores - at current prices)






Wind Power










Mini and Small Hydro








Cogeneration in Sugar Industry
















Waste to Energy



















6. (i) Renewable Energy Project Financing: It is estimated that from the targets of additional capacity of 4200 MW Renewable Energy power in the next 5 years by 2014 entails an investment of about Rs 22,000/- crores at current prices.  During the previous years, the investment in the various Renewable Energy developments has come from the private entrepreneurs. However during the previous three years of Renewable Energy development, in the state, on an average annually about 300 MW Renewable Energy capacity additions brought in about Rs 1,800 crores investment by the private sector.  It is expected that the present policy initiative may bring in an additional investment of Rs 1,600 crores annually by the private sector. With this the private sector investment would amount to Rs 17,000 crores during the policy period. The profit making Central and State Public Sector Undertakings may also invest in the Renewable Energy projects and may bring in Rs 5,000 crores.



6. (ii) Akshaya Shakthi Nidhi (Green Energy Fund): In order to facilitate Renewable Energy project financing and Energy Conservation and Efficiency measures Green Energy Fund ‘’Akshaya Shakthi Nidhi’’ will be established. “Green Energy Cess” of Rs 0.05 (five paise) per unit would be levied on the electricity supplied to commercial and industrial consumers. It is estimated to generate about Rs 55 crores annually. Out of the Rs 55 crores, 10 % of this fund to the tune of Rs 5 crores will be set apart as contribution to Energy Conservation Fund for Energy Conservation activities. The balance Rs 50 crores will be set apart for Renewable Energy project financing. The Akshaya Shakthi Nidhi will be administered by KREDL for promotion of Renewable Energy particularly in Public Private Participation (PPP) mode, decentralized generation and distribution Renewable Energy projects for the benefit of rural sector. The funds may also be utilized for land acquisition and land development activity for Renewable Energy projects including Net Present Value and compensatory afforestation, soil moisture conservation etc for forest land clearance. 



7. Land Policy for Renewable Energy Projects: The availability of suitable land and making the land available expeditiously is a major issue for RE development.  To realise the targeted potential of 4200 MW during the policy period about 12000 Ha of various categories of lands like Government Barren lands, Revenue lands, Private lands, Panchayat lands and Forest lands etc are estimated to be necessary in different districts of the state. To address the land issue following is proposed.


7.(i) Land Identification for Renewable Energy Projects:  Inventory of surplus and unused land available with Public Sector Undertakings, State Govt., Urban Local Bodies/ Gram Panchayath lands and suitable private waste lands, unproductive single crop agricultural lands will be undertaken District wise, by the Deputy Commissioners to identify lands for the Renewable Energy projects. Care will be taken to exclude archaeological heritage lands, prayer and temple lands, burial grounds and monuments etc. The Government will provide such available lands, waste lands for developing the Renewable Energy projects under the provisions of Section 71 of Land Revenue Act to Karnataka Renewable Energy Development Limited. Further necessary amendments to section 79(a), 79(b) and 80 of the Karnataka Land Reforms Act are to be made to enable the Renewable Energy project developers to purchase suitable private land directly from the owners of the land.



9. (ii) Clearance of Renewable Energy Projects: Clearance of Renewable Energy projects involves sanctions/clearances from a number of Government Agencies/Departments. The concerned department will give necessary approval and clearance within 90 days of the application submitted. KREDL will monitor with the concerned departments.


9. (iii) Single Window Clearance: A State Level Empowered Committee with the Chief Secretary Government Of Karnataka as Chairman will provide single window clearance for developing the Renewable Energy Source Power Plants. The Single Window will review the issues relating to the statutory clearances of various departments. The clearances / approvals which are not accorded within the specified time period will be dealt by the Single Window empowered committee. Inter departmental co-ordination will be strengthened to achieve better results. Benefits of supportive policies will be taken to the maximum extent. The composition of the Empowered Committee will be separately notified.


9. (iv) Evacuation Arrangement:Often the Renewable Energy projects are located in remote areas wherein the evacuation arrangements/substations are not readily available and the project commissioning depends on grid strengthening. To overcome the situation Karnataka Power Transmission Company Limited and Karnataka Renewable Energy Development Limited will jointly undertake the survey of LV, HV and EHV Substations and required transmission and distribution lines necessary for the Renewable Energy projects. A committee will examine the Grid issues related to the Renewable Energy projects. Karnataka Power Transmission Company Limited will undertake the augmentation of transmission lines and lying of new lines and receiving stations as required. Respective Renewable Energy Project Developers will bear the cost of transmission lines from the project site to the substation as per grid norms.


9. (v) Time Limit for project Completion:It is mandatory for the developer to complete the project in all respect and commission the project with grid synchronization within  a period 3 years from the date of the statutory clearances. Karnataka Renewable Energy Development Limited will endeavour to obtain all required statutory clearances within 6 months period.


10. Regulatory Issues:  Following facilities will be extended to all the Renewable Energy Projects.


10. (i) Grant of Incentives Available to Industries:  Generation of electricity from Renewable  Energy Sources will be treated as Industry under the provisions of the Industrial policy  2009 and entry tax exemptions and all other  incentives available to industrial units under such schemes will also be extended to the Renewable Energy Power Projects irrespective of the Zone.




10. (ii) Renewable Energy Obligation: The state Government is committed to procure & utilize the Renewable Energy power as required and determined by Government of Karnataka by time to time, subject to Karnataka Electricity Regulatory Commission (KERC) guidelines. Due grid strengthening will be undertaken to meet this commitment. The state Government reserves the first right of refusal in respect of purchase of power produced by the Renewable Energy Sources which come under this Renewable Energy Policy.


10. (iii) Feed in Tariff: Various sources of Renewable Energy power procurement by the Energy Supply Companies/distribution licensees will be at Tariffs as determined by the KERC. When plant completes 11 years have to sell power to Energy Supply Companies on Tariff based on variable cost subject to KERC norms.



10. (vi) Wheeling of Electricity: wheeling charges @ 5 %will be applicable subject to the KERC norms.


10. (vii) Banking of Electricity: The banking facility for the power generated shall be allowed as determined by KERC from time to time for the energy banked with the Karnataka Power Transmission Company Limited / distribution licensee. Energy banked beyond the time prescribed will be utilized and paid for by the Karnataka Power Transmission Company Limited / distribution licensee at tariff applicable as per KERC norms.




10. (viii) Power Purchase Agreement (PPA):The sale of electricity by Power Producer of Energy Supply Company will be governed by the Power Purchase Agreement executed between the Power Producer and witnessed by Karnataka Electricity Regulatory Commission. The Power Purchase Agreement will be executed in a time bound manner. Power Company of Karnataka Limited will assign Power Purchase Agreements to the ESCOMs with back to back arrangement.


10. (ix) Settlements:All transactions between the Karnataka Power Transmission Company Limited / ESCOMS /Distribution Licensee and the producer involving wheeling or sale of power will be settled on monthly basis. The Karnataka Power Transmission Company Limited / distribution licensee will pay interest on payments delayed beyond a month @ State Bank of India short term Prime Lending Rate for delayed amount for actual period of delay.


10. (xii) Security Deposit and Royalty: The Government will determine suitable Security Deposit for the Renewable Energy projects to bring in earnestness in project implementation. The quantum of royalty to be levied on energy generation from Renewable Energy sources will be determined by the Government.


11. Policy on Financial Incentives: Following incentives will be extended to all the Renewable Energy Projects.


11. (i) Government Of India Incentives: The various concession and incentives allowed by Ministry of New And Renewable Energy /Government Of India regarding Detailed Survey & Investigation/Detailed Project Report, Generation Based Incentive etc will ipso-facto continue to be passed on by the State Government to the project developer through Karnataka Renewable Energy Development Limited.


11. (ii) Entry Tax: Entry tax and other fiscal incentives to Renewable Energy generation units are in accordance with the Industrial Policy 2009-10.  


11. (iii) Value Added Tax (VAT): The Value Added Tax applicable on various Renewable Energy equipments and instruments as well as the Energy Efficient and Power saving appliances etc, like the Renewable Energy and Energy Efficient  consumer durables directly purchased by the consumers will be considered for suitable revision under the provisions of Karnataka State Sales Act.


13. (i) Strategy for Wind projects:Under the policy it is proposed to develop additionally 2969 MW of wind power projects during the five years up to 2014. This would involve a total investment of Rs 15680 Crores. To facilitate successful expeditious commissioning of the targeted wind projects the various statutory clearances will be cleared through single window mechanism. Karnataka Renewable Energy Development Limited will undertake Wind Resource Assessment and offer the identified windy sites for development on Public Private Participation/Build Operate Own and Transfer (BOOT) mode. To avoid locking of huge capacities the wind project allotment will be restricted to 50 MW at a given area each time. In case of potential in the said location further allocation considered after successful commissioning of the allotted project. Further only 3 sites will be considered including the ones under the process of development. The Government waste lands in windy locations identified for industrial development will be offered to set up wind projects.  The capacity of the earlier commissioned wind projects which are more than 10 years old will be considered for augmentation by replacing with efficient higher capacity Wind Turbine Generators. Earlier allotments not commissioned beyond time period will be reviewed. Small wind energy generators will be promoted up to 10 kw for stand alone systems.


            The Karnataka Power Corporation Limited is the Karnataka public sector undertaking is the premier Power Generating Company in the State. A preferential allotment of Wind Power Projects above 500 MW and Solar Power Projects above 100 MW will be considered. The followings geographical regions in Karnataka State are reserved for allotment of Wind Power Projects to Karnataka Power Corporation Limited.


(a) 50 MW at Kappadagudda Extension.

(b) 270 MW at Hill ranges of Guledagudda –Gudur.

(c) Hill ranges of Sureban,Yere Kittur, Kallur, Mallur and Basidoni.

(d) Hill ranges of Halolli to Katkol (Godachi, Khanpet, Torgal)

(e) Hill ranges of Halagatti, Mudakavi, Tadasi, Vasan, Govinakoppa.

(f)  Hill ranges of Soudatti to Ugargol.

(g) Hill ranges of Hanumana Hatti to Kakti.

(h) Zalki of Indi Taluk. 


Banking - allowed @2% of energy output

Buy back - Rs3.70/ Kwh without any escalation for 10 years

Capital subsidy - No electricity duty for 5 years

Reactive power - 0.40 paise per LVARh

Third party sale - allowed

Wheeling charges - 5 % of energy

List of wind energy consultants in India 

List of wind turbine manufacturers in India

List of Wind power producers in india and their capacity

Potential sites for wind farm in Karnataka







Given below are old information.


Target for Wind Energy in Karnataka

  •  Wind Power capacity from the current installed capacity of 1120.685 MW to 3500 MW by 2012 (contributing about 8260 M.U./year) and 7500 MW by  2018 (contributing about 17700 M.U. /year).
  • Wind power harnessing is area specific. Wind is the fastest-growing clean energy sector of the renewables. Much of the technology for wind power already exists. Advanced technologies like “Floating wind power plants” will be explored in the west coast.There is a potential of about 13000 MW for the development of wind power plants in the state. Wind potential areas in the state are Chitradurga, Gadag, Chikmaglur,Bellary, Davangere, Koppal, Bijapur, Bagalkot, Belgaum etc Districts.
  • Wind resource assessment (WRA) is the primary requirement for wind power development. In this direction wind resource assessment study is an on-going activity of the state Govt (KREDL) in collaboration with C-WET (GOI).
  • About 220 wind monitoring stations are necessary for the macro level assessment of wind resources. About 72 wind monitoring stations have already been established, and it is proposed to establish another 110 stations during 11th plan, and 182 stations during 12th plan period.
  • The wind turbine generators manufacturers (WTGs) / Developers resorting to wind resource assessment studies at micro level, and they have obligation to share the data with  KREDL/MNRE.  
  • To complement the wind potential areas, transmission network strengthening is identified as a key area for wind energy projects.
  • Wind Power Project are mostly located in remote backward hilly areas, they contribute towards rural development of such areas apart from employment generation to local people.
  • Issues related to the growth of wind energy in the state will be addressed by giving all necessary facilitation by establishing necessary “Single Window Clearance” system including land issues.

Government policies for wind power in karnataka

Incentives for RE projects in Karnataka

1.The various concession and incentives allowed by MNRE/GOI regarding DSI/DPR, GBI etc will ipso-facto continue to be passed on by the State Government to the project developer through KREDL.


2. RE power procurement by distribution companies will be at tariffs as determined by the KERC.

3. Government of Karnataka vide GO No EN 216   NCE 2006 dated 2.3.2007 accorded approval for the upper limit of the share of renewable energy in the total quantum of energy purchased by each ESCOMs enhanced to 20 %.

4. KERC in its notification No S/03/1 dated 23rd January 2008 issued amendment to KERC (power procurement from renewable energy sources by distribution licensee) Regulations 2004 fixing the minimum renewable energy to be procured by each distribution licensee between 7 to 10%.

5. Sale of electricity: On the electricity generated by the RE projects, the developers will be encouraged to sell power to the state grid on priority. Such purchases may be in whole or part as per the rules and regulations of KERC subject to the provisions of the Electricity Act 2003.

6. Wheeling and Banking of electricity: With Wheeling and Banking arrangements for RE projects, necessary co-operation and facilitation will be provided for executing Power purchase agreement (PPA) and evacuation clearance as per the Govt/KERC norms.

7. In case of Renewable Energy projects, if Government land (belonging to urban local bodies/panchayat) is available, the required land for setting up RE projects will be provided on lease basis as per rules and regulations of the Government, for a period of 30 years, subject to further renewal as determined by the Government.

8. The state Government will exempt octrio and entry tax on the RE equipments for erecting capacity sanctioned as per rules.


 Single window project clearance mechanism in Karnataka

  1. Setting up of RE projects involves sanctions/ clearances from number of Government agencies/departments. The state Government will facilitate and provide requisite clearances through a “Single Window Clearance Mechanism”.
  2. For this purpose a high level empowered committee at Government level will be constituted to accord necessary approvals/clearances.
  3. Similarly “Single Window Clearance Mechanism” for execution of Power Purchase Agreement (PPA) and for payment to the private entrepreneurs for the electricity sold to the Distribution companies will be considered.



Capacity Allotment of RE Projects


  1. Developers has to submit the details of RE project for capacity allotment in the prescribed application, after remitting application fees and processing fees to KREDL as fixed by the Government.
  2. Allotment committee constituted by the state government shall decide on the application of capacity allotment by considering various aspects of the policy, as well as the various government orders issued from time to time, and cause to issue necessary Government Order.
  3. The Allotment committee will be headed by the Principal Secretary, Energy Department, Government of Karnataka.
  4. The Government of Karnataka reserves right to allot a RE project to a state enterprise.
  5. Industrial units located in Karnataka and willing to establish RE projects for their captive use will have priority.
  6. The prospecting IPP (Independent Power Producer) shall not claim any right on allotment for self identified RE projects.
  7. Wherever more than one prospecting IPP is involved, if necessary, the self identified RE projects shall be considered for allotment on the basis of open competitive bidding.
  8. The allotment committee and Government will have the right to decide on the number of RE projects that may be allotted to any given single IPP/developer.
  9.  Enhancement of allotted capacity of the RE projects will be considered on merit, only after submission of detailed project report (DPR), justifying the enhancement.
  10. Transfer/Sale of allotted RE capacity will be considered as per rules and regulations of the Government, only after submitting necessary justification.
  11. Any sanctioned RE project that remains un-developed within the time limit as per the agreement, the state Government has a right to cancel and terminate the project and the same may be allotted through open competitive bidding. However the Government may consider giving necessary time extension on merit and justification after remitting extension fee to KREDL as fixed by Government.
  12. From the date of agreement for the RE projects sanctioned, Royalty will be exempted up to 18 years, and from 19th year, Royalty to the Government on Renewable Energy, shall be collected @ 15 % of the energy generated.
  13. The RE Projects, will be sanctioned for a total period of 30 years from the date of execution of the agreement. However, the Government may consider extending the project period after the expiry of the agreement based on merit and justification.

Nodal Agency: Karnataka Renewable Energy Development Limited (KREDL) will be the nodal agency for the implementation of the RE Policy. KREDL will be responsible for laying down the procedure for inviting of proposals from Independent Power Producers (IPP’s), DPR, evaluation of project proposals, project approvals, project implementation, operation & monitoring.

Revenue Land: If Government/local Body/Gram Panchayat land is available, the required land for setting up RE projects will be leased to the RE developer as per Government rules and regulations for a period of 30 years subject to further renewal on mutually agreed terms and conditions.

Land on canal banks: Wherever Irrigation land on canal banks is available beyond their requirement, Karnataka Irrigation Department (KID) will leaser such land to the RE developer as per Government rules and regulations  

Private Land: NA conversion will be exempted for renewable energy projects for purchase of private/agricultural land since they are environmentally friendly and result in zero carbon emission.

Forest Land:  Wherever Forest land is involved in the RE project  the same will be processed and considered by the Karnataka Forest Department under the provisions of the Forest Conservation Act (1980) since they are environment friendly and result in zero carbon emission

Renewable Energy Special Economic Zone (SEZ): A separate RE SEZ will be established in the backward areas of Karnataka to promote and develop RE projects especially solar thermal/PV grid connected power projects. Renewable Energy Sources like wind and solar require large tracts of land for setting up power plants and also for manufacturing units of Solar PV and wind Turbine etc. These sources are area specific. Potential for development of wind and solar power plants exists in northern parts of the states in Districts like Gulbarga, Bijapur, Bidar, Bellary, Raichur, Chitradurga, Koppal Gadag, Belgaum etc. Approximately 2 hectares of land is required to establish unit of 1MW solar plant. In view of this, a “Special Economic Zone (SEZ)” of 150-250 Hectares of suitable waste land/non productive agricultural land will be identified to be developed as SEZ under the provisions of the Industrial Policy of the state to establish RE projects including setting up of solar manufacturing units and other RE projects allied manufacturing units.


Capacity Allotment of RE Projects

  • The developer shall submit application for allotment of power capacity in prescribed application form to the KREDL remitting application fee and processing fee as prescribed by the KREDL/Government the KREDL will recommend the application to Government for further consideration within 30 from the date of submission to KREDL.
  • The Government of Karnataka reserves right to allot a RE project to a state enterprise.
  • Industrial units located in Karnataka and willing to establish RE projects for their captive use will have priority.
  • The prospecting RE power Developer/IPP (Independent Power Producer) shall not claim any right on allotment for self identified RE projects.
  • Wherever more than one prospecting RE power Developer/ IPP is involved, if necessary, the self identified RE projects shall be considered for allotment on the basis of open competitive bidding.
  • The allotment committee and Government will have the right to decide on the number of RE projects that may be allotted to any given single IPP/developer.
  • Enhancement of allotted capacity of the RE projects will be considered on merit, only after submission of detailed project report (DPR), justifying the enhancement.
  • Transfer/Sale of allotted RE capacity will be considered as per rules and regulations of the Government, only after submitting necessary justification.
  • Any sanctioned RE project that remains un-developed within the time limit as per the agreement, the state Government has a right to cancel and terminate the project and the same may be allotted through open competitive bidding. However the Government may consider giving necessary time extension on merit and justification after remitting extension fee to KREDL as fixed by Government.
  • The RE Projects, will be sanctioned for a total period of 30 years from the date of execution of the agreement. However, the Government may consider extending the project period after the expiry of the agreement based on merit and justification


Allotment Committee: A committee under the Chairmanship of Principal Secretary, Energy Department shall consider for allotment of capacity of the renewable energy projects to the private entrepreneurs within 90 days from the date of submission of application to KREDL


Clearance of RE Projects: “Single Window Clearance” Empowered Committee will review the RE projects. RE projects involve sanctions/clearances from a number of Government Agencies/Departments. The developer shall submit application to the concerned Government department/organization for necessary clearances and approvals. The concerned department shall give necessary approval and clearance within 45 days once the application submitted by the developers. If there is any delay by any Government department/organization the Empowered Committee shall provide the clearances in a time bound manner through a single window mechanism within a period of 30 days from the date review and Empowered Committee shall meet & review RE projects in the month of January, September and December of every year.


Evacuation system:  The evacuation system for purchase of energy shall be provided by the KPTCL/distribution licensee through its main grids.


Grid interfacing: Grid interfacing including installation of Transformers, panels, kiosks, protection & metering on HT side of generating station and its subsequent maintenance will be undertaken by the power producer/ plant owner.


Installed capacity of wind energy in Karnataka:

As on 31.3.2006

Demonstration Projects (MW)



Private Sector Projects (MW)



Total Capacity (MW)


As on 31.3.2007

Demonstration Projects (MW)



Private Sector Projects (MW)



Total Capacity (MW)


Addition during 2006-2007



Addition during 2007-2008



Addition during 2008-2009

(MW) till 30.11.08


Total Capacity

(MW) till 30.3.11



Year wise capacity addition in Karnataka:

Year wise installed capacity addition (MW):

Up to Mar 2
















Total capacity



Government Incentives for Wind Power


Fiscal and financial incentives


  • Concession on import duty on specified wind turbine parts
  • 80% accelerated depreciation over one or two years
  • 10 year income tax holiday for wind power generation projects
  • Excise duty relief on certain components


Land policies


  • The Ministry of Environment and Forests has issued guidelines for diversion of forest lands for non-forest purposes, particularly to enable wind generation
  • Clearance of leasing and forest land for up to a period of 30 years for wind developers


National Feed-in-Tariff


  • In June 2008, the MNRE announced a national generation-based incentive scheme for grid connected wind power projects under 49 MW, providing an incentive of 0.5 rupees per KWh in addition to the existing state incentives.


  • Investors cannot draw any benefit from accelerated depreciation under the Income Tax Act can opt for this alternative incentive instead.


Incentives for Wind Energy –Direct Tax

  • 10 year tax holiday in a block of 15 years for:
  • Generation or generation and distribution of power
  • Transmission or distribution of power by laying new distribution lines
  • Tax holiday available to an “undertaking” which begins to generate power or starts transmission or distribution by laying a network of new transmission / distribution lines before March 31, 2011
  • Accelerated depreciation (80 to 100 percent) on Written Down Value (WDV) basis for energy saving and renewable energy devices such as wind mills, solar cookers etc
  • Additional depreciation of 20 percent
  • One time election to power generating companies to claim depreciation on straight-line basis (SLM) available

Incentives for Wind Energy –Indirect Tax  ( The wind power industry fears that capacity addition will suffer due to policy uncertainty. Specifically, the generation-based incentive scheme that offered 50 paise a unit of electricity has not been extended. The industry is hoping that the Ministry for New and Renewable Energy will get this scheme extended for the 12{ t}{ h} Plan period too.

Besides, the facility of accelerated depreciation – which allowed a higher depreciation for calculating taxable profits in the first year of buying the wind turbine – has been discontinued from April 1. Those putting up wind turbines for captive use were the main beneficiaries of the accelerated depreciation scheme.) This is the latest on wind energy incentives))


  • Thrust of fiscal incentives for mega power projects (includes hydro power projects of specified capacities); eligible for complete customs and excise duty exemptions
  • Power projects, renewable or otherwise, not qualifying as mega power projects eligible for concessional rate of customs duty at 18.62 percent (as against 21.52 percent)
  • Concessional rates for excise (Nil rate of duty as against 8 percent) and customs duty (Nil to 5 percent of BCD as against 7.5 percent / 10 percent) available for specific renewable sources of energy like wind, solar, biomass etc
  • Renewable energy devices typically attract a lower VAT rate of 4 percent
  • Deemed export benefits available; input side costs reduced by availing deemed export benefits like Advance Authorization or Deemed Export Drawback


  • GBI for grid connected wind power projects which are certified by concerned utility announced by Ministry of New and Renewable Energy (MNRE)
  • GBI of Rs 0.50 per unit(kwh) for a period of 10 years to the eligible project promoters
  • Scheme applicable to wind power projects commissioned for sale of power to the grid; not applicable for capacities set up for captive consumption, third party sale etc
  • Projects notto claim benefit of accelerated depreciationunder the Income tax Act (IT Act)
  • Projects to have minimum installed capacity of 5 MW and to be installed at project sites approved by the Center for Wind Energy Technology (C-WET)
  • GBI to encourage actual energy generationrather than capacity addition only, resulting in optimum utilization of wind resource.


Wind Capacity Utilization Factors and Generation

Wind Power Density map

Comparison of Wind Turbine Generators

Wind Energy


India has the fifth largest installed wind power capacity in the world. Wind power accounts for 8% of India's total installed power capacity.


Wind power can be broadly categorized into onshore and offshore wind power. India is yet to exploit any offshore wind resources.


Total available potential

While the official estimates at the local level put the total potential at 102,000 MW, a new Lawrence Berkeley study estimates that the potential is in the order of 2,000,000 MW. This higher potential is owing to higher available percentage of windy land for wind power development than was originally considered.


Exploited potential

Total installed capacity is 17,644 MW (Jul 2012)

Projected capacity

Estimates from the EAI Wind Research team project India having a total wind installed capacity of over 33,000 MW by 2020, implying an addition of about 2000 MW on average every year until 2020. This drop from previous estimates is due to the removal of Accelerated Depreciation and Generation Based Incentives.


Government incentives

Feed-in-tariffs are available for wind for each state; these range from Rs. 3.39 to just under Rs. 5/kWh. Generation based incentives of Rs 0.50/kWh which were available earlier have lapsed but are expected to be renewed in the near future.






üIncentive Challenges – FiT needs to be wind zone based, not state based

üTransmission Challenges – connectivity to grid and evacuation infrastructure is poor

üEfficiency Challenges – small wind efficiency low; efficiency of MW wind varies significantly from one location to another


Cost of power generation

Rs. 2.75-3.5/kWh – this includes amortized capital costs, O&M expenses, insurance, and loan repayment costs.


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  • solar1234
    solar1234 -

    Installed wind capacities in different states:


    State-wise Unit Generation Data (kWh) From Wind Power Projects


    (As on 31st March 2010)



    Year-wise Generation (Million Units)




    Upto March’05









    Andhra Pradesh




































    Madhya Pradesh



























    Tamil Nadu








    TOTAL (MW)








    (Source : MNRE)

    Wind potential

    The Karnataka State has an estimated wind potential of 8,591 MW but only 2687 Mw has been set up (Up to 31 March 2010)..

    Though Lot of capacity additions are coming up but land acquisition and forest clearance where there is good power is an issue. Also, while policies are in place, since several wind farms are coming up in rural Karnataka and substations need to be added to increase capacity additions to the grid.

    Land Acquisition for Renewable Projects:

    Karnataka has moved an amendment to the Karnataka Land Reforms Act to facilitate promoters of renewable energy projects to acquire revenue land for developing power plants in the sector.

    “Presently, the acquisition of revenue and agriculture land is not easy and renewable energy producers are finding it difficult to acquire land. The amendment is expected to simplify procedures for land acquisition,” according to K Jairaj, additional chief secretary, government of Karnataka.

    Dr.A.Jagadeesh Nellore (AP), India

    Wind Energy Expert

    E- mail:


  • aathmika
    aathmika -

    Site Locations - Karnataka
    Kaddur, Dist. Chikmangalore 
    Belgaum (Bijapur) 


    GAIL to set up wind energy project in Karnataka, besides other states !
    GAIL is also in the process of setting up a 100 MW WEG project in Karnataka and Tamil Nadu for commercial use.  

    Estimation of Installable Wind Power Potential at 80 m level in India


    In order to estimate the installable potential of the country, the KAMM generated  meso scale wind power density  map of 50 m level  was integrated with the wind power density map generated with actual measurements (wherever data is available) and re-plotted the final wind power density maps by using GIS tool. Weightage is given only for the topographical features of the area. Later the total area of each wind power density range is calculated. Due to various reasons (habitat, forest, water bodies etc.), the entire land area covered by the isopleths cannot be expected to be available for installing wind farms. As land availability assessment was not a part of the project, the real land availability for wind farm development is not assessed for estimating the installable potential. On a conservative consideration, a fraction of uniform 2% land availability for all states except for Himalayan states, Northeastern states and Andaman Nicobar Islands has been assumed for energy estimation. In Himalayan states, Northeastern states and Andaman & Nicobar Islands, it is assumed as 0.5%. However the potential would change as per the real land availability in the windy area of each state. The installable wind power potential (name plate power) is calculated for each wind power density range by assuming 9 MW could be installed per square kilometer area .  Finally the potential in the country at 50 m level with clearly stated assumptions is estimated as 49 GW (Refer Indian Wind Atlas published by CWET for more information )         .

    Similar exercise without any validation has been carried out for 80 m level with the KAMM generated meso scale map and the results are calculated and given in an attached table.  The estimated installable potential at 80 m level is found to be 102788 MW (See the Table.1.).  Wind power density map at 80 m level is given in figure 1.

    States / UTsEstimated potential (MW)
    @ 50 m ($)@ 80 m (* #$)
    Andaman & Nicobar2365
    Andhra Pradesh539414497
    Arunachal Pradesh*201236
    Dieu Damn-4
    Himachal Pradesh *2064
    Jammu & Kashmir *53115685
    Lakshadweep 1616
    Madhya Pradesh9202931
    Meghalaya *4482
    Nagaland *316
    Sikkim *9898
    Tamil Nadu537414152
    Uttarakhand *161534
    Uttar Pradesh *1371260
    West Bengal*2222

    Table 1.  Estimation of installable wind power potential at 80 m level

    *    Wind potential has yet to be validated with actual measurements.

    #   Estimation is based on meso scale modelling (Indian Wind Atlas).

    $   As actual land assessment is not done on a conservative consideration 2 % land availability for all states except Himalayan & North eastern states, Andaman Nicobar Islands and Poor windy states has been assumed. In other area 0.5% land availability has been assumed.



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