-- India has announced a generation-based incentive to promote grid interactive wind energy generation plants in the country.

The Ministry of New and Renewable Energy (OTCBB:RNWEF) hopes to give a boost to the wind power sector with this new initiative. The move will also increase efficiency in wind power generation and encourage independent power producers in the sector, the ministry said in a statement.

Minister of New and Renewable Energy Vilas Muttemwar said it was the ambitious target of 10,500 MW planned for the 11th Plan period that prompted his ministry to find ways to attract new and large independent power producers in the wind energy sector through an alternate generation-based scheme.

He said the plan is aimed at providing a level playing field to those investors who were unable to absorb the benefit of accelerated depreciation in the sector. "We hope independent power producers will expose wind power industry to market forces and competitive pressures, which can result in reduction in cost of equipment," he pointed out.

Muttemwar said grid interactive wind power generation plants of minimum installed capacity of 5 MW will be eligible for the incentive, which would be available only for projects commissioned that are synchronized to the grid and certified by the concerned utility. It will be for projects installed at wind potential sites validated by the Center for Wind Energy Technology and for those independent power producers whose capacities are commissioned for sale of power to the grid.