Since liberalization of the Indian power sector in 1991, private participation in wind power production has been encouraged in Gujarat through a range of capital investment subsidies. Despite encouraging a significant level of investment within wind power, the technologies have not become more cost-effective. However capabilities within the activities of manufacturing, operating, maintaining and planning of windfarms are now relatively well established. The introduction of incentive mechanisms that explicitly encourage generation output are likely to encourage the costs of wind power to become more competitive with conventional power.