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 8500 MW producing about 14 billion KWh of energy annually. A total capacity of about 5500 MW has been installed in Europe, 1700 MW in USA, and 992 MW in India. India is now the fourth largest wind power generator in the world after Germany, USA and Denmark.

    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.

    MNES(Ministry of Non-conventional Energy Sources) 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 20,000 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 45,000 MW. Assuming a grid penetration of 20%, a technical potential of about 9,000 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 recently.

    Today, we have a wind power installed capacity of 992 MW in the country, out of which about 940 MW is accounted for by commercial installations. About 3.5 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 15 manufacturing companies active in this sector.

    Today, the capital cost of wind power projects range Rs. 6.5  crores per MW on turnkey  basis.

    The government has introduced a package of incentives which includes tax concessions such as 100% accelerated depreciation, tax holidays for power generation projects, soft loans, customs and excise duty reliefs, liberalised foreign investment procedures, etc.

    IREDA is playing a significant role in promoting Renewable Energy Projects, in general and Wind Energy Projects in particular