India's Accelerated Depreciation Policy for Wind Energy
In recent decades, wind power in India been deployed at a tremendous rate, such that wind power projects now account for two thirds of total renewable energy generating capacity and almost one tenth of total installed generating capacity. This case study examines one of the policies that is widely considered to be the primary driver behind this expansion—accelerated depreciation (AD) for wind power projects. It considers not only the increase in wind power capacity and to what extent this can be attributed to the AD policy, but also how the policy has affected wind power generation and the development of the wind turbine industry in India. The analysis draws on research conducted to date on this and similar policies in other countries (notably the United States), as well as on a series of interviews with industry stakeholders. It draws conclusions on the positive and negative lessons that can be learned from the AD policy and how these could be incorporated into future policies in the sector, both in India and elsewhere.