The government on Tuesday said state-owned clean energy lender Indian Renewable Energy Development Agency Ltd. (IREDA) will offer cheaper funds for replacing older wind energy turbines with more efficient ones.
IREDA will offer an extra 25 basis points rebate over and above the interest rates applicable to new projects, the ministry of new and renewable energy said in the policy for re-powering wind energy projects. IREDA’s lending rates differ based on the source of renewable power, class of borrower and credit rating.
The rebate is initially limited to projects with less than 1 megawatt capacity but could be extended to others later on.
“Most of the wind-turbines installed up to the year 2000 are of capacity below 500 kilowatt (kw) and are at sites having high wind energy potential,” the ministry said, adding that a re-powering policy was required. Over 3,000 MW of capacity installation are at present from wind turbines of around 500 kw or below.
To fund clean energy projects, IREDA had issued tax-free bonds of Rs.2,000 crore in 2015-16. The company is authorised to raise resources from funding agencies such as the European Investment Bank (EIB), Japan International Cooperation Agency (JICA) and the Asian Development Bank (ADB).