Wind Energy Sector Advocates for PLI Scheme to Reduce Imports
Wind energy firms seek PLI scheme to reduce reliance on imported components.
Photo by Sander Weeteling
Key Facts
Wind turbine manufacturing: Dependent on imports
PLI scheme sought: Reduce import dependency
UPSC Exam Angles
GS Paper III: Economy - Infrastructure: Energy, Investment models
GS Paper III: Industrial Policy - Make in India initiative
Potential for questions on renewable energy targets and PLI schemes
Visual Insights
More Information
Background
The modern wind energy sector traces its roots back to the oil crises of the 1970s, which spurred research into alternative energy sources. While windmills have been used for centuries for tasks like grinding grain and pumping water, the development of wind turbines for electricity generation gained momentum in the late 20th century. Early wind turbines were often small-scale and experimental.
The establishment of supportive policies, such as feed-in tariffs and renewable energy mandates in countries like Denmark, Germany, and the United States, played a crucial role in driving the commercialization and scaling up of wind energy technology. The evolution of wind turbine technology has involved significant advancements in blade design, generator efficiency, and control systems, leading to larger, more powerful, and more reliable turbines.
Latest Developments
In recent years, the wind energy sector has witnessed a surge in offshore wind farm development, driven by higher wind speeds and reduced land-use constraints. Technological advancements are focusing on larger turbine sizes, floating wind platforms, and improved grid integration solutions. The industry is also grappling with challenges related to supply chain disruptions, rising raw material costs, and permitting delays.
The focus is shifting towards hybrid renewable energy projects that combine wind and solar power, along with energy storage solutions, to provide more reliable and dispatchable power. Government policies are increasingly emphasizing domestic manufacturing and supply chain security to reduce reliance on imports and promote job creation within the country.
Practice Questions (MCQs)
1. Which of the following statements is/are correct regarding Production Linked Incentive (PLI) schemes in India? 1. PLI schemes aim to boost domestic manufacturing and reduce import dependence. 2. PLI schemes provide incentives based on incremental sales linked to production. 3. All sectors are eligible for PLI schemes, irrespective of their strategic importance. Select the correct answer using the code given below:
- A.1 and 2 only
- B.2 and 3 only
- C.1 and 3 only
- D.1, 2 and 3
Show Answer
Answer: A
Statements 1 and 2 are correct. PLI schemes are designed to boost domestic manufacturing and provide incentives based on incremental sales. Statement 3 is incorrect as PLI schemes are typically targeted at specific sectors of strategic importance.
2. Consider the following statements regarding the wind energy sector in India: 1. India has a significant wind turbine manufacturing capacity, primarily focused on assembly. 2. India is largely self-sufficient in the production of critical wind turbine components like gearboxes and special bearings. 3. The cost of wind energy generation is consistently higher than that of solar energy in India. Which of the statements given above is/are NOT correct?
- A.1 only
- B.2 and 3 only
- C.1 and 3 only
- D.1, 2 and 3
Show Answer
Answer: B
Statement 2 is incorrect as India is dependent on imports for critical components. Statement 3 is also incorrect; the cost of wind energy generation has become competitive with, and sometimes lower than, solar energy in certain regions.
3. Assertion (A): Imposing import duties on wind turbine components can provide short-term support to domestic manufacturers. Reason (R): Import duties increase the cost of imported components, making domestically produced components more competitive. In the context of the above statements, which of the following is correct?
- A.Both A and R are true and R is the correct explanation of A
- B.Both A and R are true but R is NOT the correct explanation of A
- C.A is true but R is false
- D.A is false but R is true
Show Answer
Answer: A
Both the assertion and the reason are true, and the reason correctly explains why import duties can provide short-term support to domestic manufacturers.
Related Articles
Rice Fortification Scheme Suspended; Activists Welcome the Decision
India and Brazil Sign MoU for Rare Earth Minerals
Indian States Eager to Explore Growth in Orange Economy
Centre Shifts Focus from PSU Sales to Maximizing Asset Value
Bolivians protest burning of cash after plane crash in El Alto