India's new 3,500 MW renewable power to come mostly from wind: Minister

India's Renewable Energy Minister Farooq Abdullah revealed that the country will be adding about 3,500 Mw of renewable power during the current fiscal, entailing a capital investment of about 29,000 crore.

Half of the capital investment would be towards wind energy, investments in solar power are expected to be about Rs 9,000 crore. Other renewable sources like small hydro power and bio-power would have investments of about Rs 3,000 crore and Rs 2,500 respectively.

“It is envisaged that a power generation capacity of around 3400 Mw (grid-interactive) and 130 Mw (off-grid / captive) from various renewable energy sources, mainly wind, solar, biomass and small hydro, will be added in the country during the current financial year 2011-12″, Abdullah said in the Parliament.

Additional investment of about Rs. 1,000 crore is envisaged in deployment of decentralised renewable energy systems/ devices like biogas plants, solar water heating systems and SPV lighting systems in remote villages/ hamlets.

The government of India is also taking measures to facilitate participation of private sector in setting up renewable projects, such as the Generation Based Incentives Scheme for wind power and solar power and and incentives like capital subsidy and concession on excise duty. The government has also created a contingency fund for solar power projects if state utilities fail to make payments.