Gujarat government has approved the Wind Energy Policy to expedite and encourage development of wind power generation activities in the state on 25 July 2013.

The existing wind energy policy came to an end in March 2013. The new 25 year policy, exempting the power producers from electricity duty and allowing captive use, seeks to utilise 1,600 km of state coastline and waste patches of barren land for the generation of wind power. The installed capacity of wind power in the state rose from 150 MW in 2001 to 3,147 MW in 2013. The installed capacity in the country stands at 19,000 MW.

As per the new wind energy policy, the developers of such wind power plants will be able to sell the electricity to Gujarat Urja Vikas Nigam (GUVNL), or to any other company holding a license for electricity distribution. Wind energy generators will be able to sell it to buyers at Rs 4.15 per unit - higher than Rs 3.56 per unit in the outgoing. Wind energy developers will be allowed to use the electricity in their own factories if located in Gujarat, subject to wheeling and transmission charges. However, developers will have to pay an additional five paise per unit for self-consumption at more than one location.

In case of self-consumption, the surplus power will be considered to be sold at Rs 3.52 per unit to the distribution company. Power producers not willing for captive consumption and not willing to sell at discounted rates will have to pay wheeling and transmission charges, without using banking facilities, and will be allowed to sell it to a third party within a 15-minute period block after the offsetting process.