Table 4 Policy of the state of Rajasthan for sale of power from wind installations

March 1999 – February 2000

Electricity could be purchased at INR 2.75 (US$ 0.061/kWh) with just 2% wheeling charges along with sales tax incentives. The developer was allowed to bank electricity for one year.

February 2000 – April 2003

Electricity could be purchased at INR 3.03 (US$ 0.067/kWh) while the wheeling charges were kept same at 2%. The provision for banking for 12 months was limited to end of financial year only (March 31). If the banking period is exhausted and the electricity was not sold out by then, the state power utility would buy balance amount of electricity at 60% of the agreed purchase price.

April 2003 – October 2004

Electricity could be purchased at INR 3.32 (US$ 0.073/kWh). The wheeling charges were drastically increased from 2% to 10% for the volume of electricity supplied to the grid. The banking period was reduced from 12 months to the end of calendar year (December 31).

October 2004 – Onwards

The purchase price was reduced from INR 3.32/kWh (US$ 0.073/kWh) to INR 2.91/kWh (US$ 0.064/kWh) which is 13% lower than the previous power policy.