According to the Global Wind Energy Council (GWEC) Global Wind Report 2024, India currently ranks fourth globally in total wind installations with 45 GW of installed onshore wind capacity as of January 2024. This positions it as the second-largest wind market in the Asia-Pacific region, following China. GWEC anticipates continued growth in the sector, projecting an additional 22.8 GW of onshore wind capacity between 2024 and 2028.
In 2023, India commissioned over 2.8 GW of onshore wind capacity—the highest annual installation since 2017. The National Electricity Plan projects that India’s installed wind capacity will likely reach approximately 73 GW by 2026-2027 and 122 GW by 2031-2032. Additionally, GWEC highlighted that there is a robust pipeline of more than 13 GW of wind projects in India as of September 2023.
To facilitate these ambitious targets, the central government has enabled public sector undertakings (PSUs) such as NHPC, NTPC, Indian Railways, SJVN, and PTC to administer auctions of annual wind and renewable projects. State utilities have also announced standalone wind, RTC (real-time control), FDRE (firm, dispatchable renewable energy), and hybrid auctions totaling 21 GW of capacity in 2023.
However, challenges remain. “Despite positive policy and regulatory momentum, the current onshore wind forecast through the end of the decade still leaves a sizable gap between wind market growth and the government’s 140 GW target of installed capacity by 2030,” according to the GWEC report. Issues such as state-level complications for right of way, sanctity of power purchase agreements (PPAs), and delayed payments, along with difficulties in land allocation, continue to impede progress. Additionally, the industry is facing increased turbine prices due to commodity price inflation and higher financing costs.
Addressing these challenges is crucial for further development, particularly in the offshore wind sector, where recent progress includes the publication of a revised strategy paper and the announcement of offshore wind seabed leasing of 4 GW capacity in Tamil Nadu by SECI.
Devansh Jain, Executive Director of INOXGFL Group, elaborated on the policy support: “The Government of India’s firm stance towards wind capacity addition over the next decade is supported by several enabling policies which include annual auctions of 10 GW of wind energy projects up to FY2028 through four nodal agencies, a defined wind RPO trajectory, and VGF for offshore wind projects among others. With India’s strong projected economic growth trajectory, power demand is expected to grow at a CAGR of 5-6% over the next decade. Given that wind power today is one of the cheapest long-term sources of energy, with a very short project gestation period, it will be among the major contributors to India’s energy requirements going forward.”
India’s continued focus on expanding its wind energy capacity, both onshore and offshore, is pivotal as it leads the transition towards sustainable and renewable energy sources, aligning with its commitment to global environmental goals and its ambitious national energy strategies.
