SBI banks on wind power

India's largest lender State Bank of India (SBI) has financed many wind power projects in the country: Now it is setting up a few of them as well.

The country's largest lender will set up wind power projects in Maharashtra (9 Mw), Tamil Nadu (5 Mw) and Gujarat (1.5 Mw) - with a combined capacity of 15.5 Mw - for its captive consumption at various SBI offices and branches in these three states.

A senior SBI official said the board of directors wanted the bank to explore the use of non-conventional energy resources, including solar and bio mass. "The power from such plants should help us to substitute thermal power," he said.

In the process, SBI also wants to project itself as a green organisation - the buzzword these days - and a bank that promotes clean energy initiatives.

SBI has called for competitive bids for establishing captive wind power projects on turnkey basis, including land, infrastructure and permissions. The operations and maintenance would also be handled by the project contractors. The plants are expected to be commissioned by the middle of March next year.

The projects involve wheeling power to multiple consumption points, the official said. Policies, including taxes on those dealing with moving (wheeling) wind power across states and use are still evolving.

India ranks fifth in the world after the US, Germany, Spain and China with a wind power installed capacity (cumulative) of about 11,000 Mw. With the availability of better and efficient wind turbines and increased infrastructure for power evacuation, the wind power potential of the country, currently estimated to be over 45,000 Mw, could go up further.

The government has set a target for generation of 10,500 Mw from wind energy, out of the 14,000 Mw total renewable energy during the 11th Plan period. Also, it has announced a scheme for generation-based incentives of 50 paise per unit of electricity fed into the grid from wind power projects subject to a maximum of Rs 62 lakh per Mw to increase investor base.