Demand for turbines in India may drop by nearly 400 megawatts

A generous tax break credited with the massive surge in wind power investments in India has been blown away.

A tax break that allowed wind power projects to claim an accelerated depreciation at 80% of the cost of equipment expired March 31, and that incentive has been slashed to 15%, said Bloomberg. Demand for turbines may drop by nearly 400 megawatts because of the planned cut, Bloomberg estimates.

The tax break is credited with driving 70% of India’s wind installations in the last fiscal year.

The end of the tax break came just as a report surfaced that estimated India’s wind energy potential at up to 30 times greater than the previous generally accepted assessment.