Wind energy sector enjoys favorable regulatory policies as well as incentives from Government of India and State Governments.

Some of the key incentives that are available to the wind projects are:

• Preferential tariff from the State Electricity Boards/STU

• Hon’ble APERC vide O.P.No.13 of 2012 dt: 15.11.2012 issued orders on determination of tariff for Wind Power Projects

• Capital Cost Rs.5.75 crores per MW (including evacuation cost)

• Levelised tariff for a 25 years period is fixed at Rs.4.70/KWH

• The life of the project and tariff period is for 25 years

• The validity of the order is for the projects entering PPA between 15.11.2012 and 31.03.2015

• Permitted to dispatch 100%

• The process for revision of Tariff at APERC is in process based on the petition filed by the company

By Government of India

• 80% Accelerated depreciation is available from 01-04-2014

• Generation Based Incentive @ Rs. 0.50 per KWH is available with a cap of Rs. 1 Crore per MW

• Tax incentives

• Concession on custom duty

• FDI up to 100% under the automatic route is permitted in renewable energy sector

Wind Power Policy of AP was announced vide GO Ms no.9 dated 13.02.2015 of Energy Department. The Highlights are :

• Advance possession of revenue land by the District Collector

• To promote captive, group captive and sale to third party within state

• To encourage solar & wind Hybrids

• No transmission and distribution charges for wheeling

• 100% Banking facility for 12 months. Drawl for 5 months in a year (April to June, Feb & March)

• Exemption of electricity duty

• Deemed PPP and Non-Agricultural status including deemed industry status

• Exemption of pollution clearance

• Special incentives for manufacturing units

• Empowered capacity allotment of 40 MW to NREDCAP