Environment Ministry Eases Lease Rent on Wind Projects

In a bid to boost investments in wind power projects and deliver clean energy at inexpensive rates, the Environment Ministry has decided to ease the lease rent of Rs 30,000 per megawatt (MW) charged mandatorily from wind power companies.

Environment Minister Prakash Javadekar took the resolution in a evaluation meeting at the ministry headquarters, saying this move will inspire investment and help deliver wind power at a cheaper rate.

“The government envisages to meet maximum energy requirement by tapping renewable energy resources and, to achieve the target of clean energy in a time-bound manner, various policies and regulations are being constantly updated. The government is committed to providing clean and green energy at a cheaper rate,” the minister said.

Presently, to establish wind power project over forest land the existing procedure requires payment of mandatory charges for compensatory afforestation and Net Present Value (NPV). In addition to mandatory charges, the wind power companies had to pay additional lease rent of Rs 30,000 per MW, a ministry official said.

This additional cost is not mandatory for other renewable energy projects such as solar power and hydel electric projects. “Additional cost for generation of clean energy through wind power escalates the per-unit cost of power at a consumer level,” the official said.

The ministry said that promotions of such projects also strengthen the government’s commitments towards international agreements, and one of the national commitment pledged in Paris in 2015 was to have 40 percent of the power from renewable resources by 2030.

“It is noteworthy that currently India has over-achieved the target and is well on track to ensure that more than 50 percent of our installed capacity will come from renewable by 2030,” it said in a statement.

Wind Power | News published on 23/08/2019 by Moulin

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