Power generation from wind has emerged as one of the most successful programmes in the renewable energy sector, and has started making meaningful contributions to the overall power requirements of some States.

    Energy is a major input for overall socio-economic developement. Use of fossil fuels is expected to fuel the economic development process of a majority of the world population during the next two decades. However, at some time during the period 2020-2050, fossil fuels are likely to reach their maximum potential, and their price will become higher than other renewable energy options on account of increasingly constrained production and availability. Therefore, renewables are expected to play a key role in accelerating development and sustainable growth in the second half of the next century, accounting then to 50 to 60% of the total global energy supply.

    After the creation of a seprate Ministry in 1992, special emphasis was given in the Eighth Plan to generation of grid quality power from renewables. The total installed capacity of power from renewables today stands at nearly 1350 MW with contribution from wind power of nearly 1000 MW.

    Wind power installations worldwide have crossed 78728 MW producing about 54 billion KWh of energy annually. A total capacity MW has been installed in Germany(20,952 MW), Spain (12,500 MW), USA (12,376 MW), India (7140 MW), Denmar(3136 MW) and in Europe. India is now the fourth largest wind power generator in the world after Germany, USA and Spain.

    The State of the World 1998, a world-watch Institute Report on progress toward a sustainable society, released earlier this year, has noted that renewable energy production in the world is expanding rapidly. Wind generation is the fastest growing energy source in this decade and is expanding at 25% per year. The Report recognises India as a new "Wind Superpower". With declining trend of cost and increase in the scale of wind turbine manufacturing, wind promises to become a major power source globally in the first few decades of the new millennium.

    MNRE(Ministry of New and Renewable Energy) are implementing the world's largest wind resource assessment programme, which forms the backbone of their wind exploitation efforts. Preliminary estimates indicate a potential of about 45,000 MW. Scientific surveys are being intensified to identify specific viable and potential sites. A recent study undertaken to re-assess the potential, places it at about 60,000 MW. Assuming a grid penetration of 20%, a technical potential of about 15192 MW is already available for exploitation in the potential States. 160 sites have so far been identified in 13 States. Survey work is in progress in 24 States / UTs. The States of Rajasthan and West Bengal have also shown wind potential.

    Today, we have a wind power installed capacity of 7320 MW in the country, out of which about 7250 MW is accounted for by commercial installations. About 33.5 billion units of electricity have been fed to the grid so far. A good local production base for wind turbines now exists in the country, with 8 manufacturing companies active in this sector.

    Today, the capital cost of wind power projects range between Rs. 4 to 5 crores per MW. This gives a levelised cost of energy generation in the range of Rs. 2.00 to Rs. 2.50 KWh, taking into consideration the fiscal benefits extended by the Government.

    The government has introduced a package of incentives which includes tax concessions such as 80% accelerated depreciation, tax holidays for power generation projects, soft loans, customs and excise duty reliefs, liberalised foreign investment procedures, etc.

    IREDA and other financial institutes mostly in the private sector are playing a significant role in promoting Renewable Energy Projects, in general and Wind Energy Projects in particular