Wind energy sector in India: a cost–benefit analysis of incentive policies

While framing policies for the wind energy sector, it is important to incorporate concerns of the stakeholders. This especially holds true for the wind energy sector in India, which is driven by private participation, representing 99% of the wind investment. Policies that reduce the cost of generation are generally viewed as more suitable than others. This paper analyses various types of policies that could be used in the wind energy sector to boost the confidence of the investor and help the sector regain the growth it experienced at the end of 1996. Policies are viewed in terms of lower cost of generation, which is beneficial for the investor, as well as cost-benefit ratios that indicate the viability of a particular policy for the government. Studies assessing the perspectives of the investor are limited, and it is hoped that this analysis will add value to the existing literature.