Solar power may still be pretty much booming in India, despite some setbacks in its ambitious National Solar Mission, but wind power is a different story, Renewable Energy World reports. And interestingly, some of the reason is similar to why wind power installations in the US rise and fall cyclically: Policy uncertainty.
The "falling off a cliff" reference comes from Ravi Kailas, CEO of the third-largest wind power developer in India. Kailas adds, "'Investors and lenders don't believe in the viability of the industry,' without additional government support through a subsidy or higher rates for power."
In the year ending March 31, India may install as little as 1.5 GW of wind power, with financing down 39% from the same period last year. This follows a record year in 2010-2011, where 3 GW of wind power were installed.
The US connection to policy: The way that wind power is promoted in the United States, with tax credits have to be renewed with such short regularity that it seems like there's a perpetual push to make sure they are renewed—and wind power installation continuing, without investors and developers being wary of the whole thing.