Positive policy moves by the new and renewable energy ministry can crank up the annual wind capacity addition by 6-8 gigawatt (GW) from fiscal 2026, around 4 times more than 1.6 GW of growth clocked in the past five fiscals, a report said.
According to a Crisil analysis, the aggressive tariff bids in reverse auctions since fiscal 2018 has been one of the key drivers of the wind energy growth.
The process led to discovery of irrationally low tariffs that were favoured by state distribution companies, but compromised returns left little incentives for developers to complete the projects. There were also delays in land acquisition and setting up of evacuation infrastructure.
