Will 2024 be a Pivotal Year for Wind Energy Generation In India?

4PEL Staff

February 2024

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India’s Wind Energy Scenario: A Summary

As we embark on the journey into 2024, the winds of change are blowing through India's energy landscape, particularly in the realm of renewables. With a nation fervently striving towards net zero goals and a global call for sustainability, wind energy will play a pivotal role in the coming decade to get India to its 500 GW renewables by 2030 goal – as a part of this, India aims to build 140 gigawatts (GW) of wind capacity by 2030.

Currently, India’s global ranking in wind power capacity is 4th with an installed base of over 45 GW, as of March 2023. Wind power accounts for approximately 10% of the country's total installed capacity and a significant 25% of its total renewable capacity.

India has over two decades of experience in harnessing power through grid-connected wind energy. Between 2010-2016 wind energy in India experienced a CAGR of 11.39% to 13%; however a tremendous slowdown occurred in the next 5 years. Factors that contributed to this stagnancy include:
  1. Introduction of competitive bidding
  2. Changes in Wind Energy policies pan-India.
  3. Supply Chain disruptions owing to the global Covid-19 pandemic.

The Tipping Point: Can 2024 be the Year for exceptional Wind Energy adoption in India?

2024 presents a unique opportunity for India's wind energy sector. With ambitious targets, government support, and promising technological advancements, the winds of change are blowing strong. Addressing the existing challenges, streamlining processes, and ensuring timely payments will be crucial in harnessing this potential.

To revive growth in the wind market and promote RE, the Indian government announced new policies and market mechanisms in 2021. In July 2022, the Ministry of Renewable Energy (MNRE) also announced an RPO trajectory till 2030 to showcase roadmap for achieving target of 500 GW of renewable generation capacity. Apart from this, the eagerness of the C&I segment to adopt wind-solar hybrid systems and the increasing demand for wind energy are all indicators of a resurgence in the segment.

Wind Energy Growth in India: Long-term Outlook

Recent research by the Global Wind Energy Council (GWEC) has identified growth drivers for this segment of Renewables in India. FY25 is expected to see a surge in installations on the back of the expiry of ISTS waivers in June 2025. With the 3 markets, Central, State and C&I procurement rising in tandem, the next 3 years will result in both onshore and offshore capacity addition. C&I volumes are expected to be driven by Wind Solar hybrid especially across states like Rajasthan, Gujarat, Karnataka and Andhra Pradesh. The government is also gearing up to award around 10 GW of wind projects annually, from FY24 onwards.

Meanwhile, the recent announcement of viability gap funding for 1 GW of offshore wind energy by the finance minister in the 2024 interim budget signifies a strong government commitment to the sector.

Apart from this, key drivers for offshore growth include:
  • The 37 GW off-shore Wind tenders to be awarded by MNRE in Gujarat and Tamil Nadu
  • Bringing the export grid (including cables and Offshore Wind substations) under the scope of PGCIL
  • WTG OEMs and the broader wind energy supply chain turning to India for manufacturing + export opportunities.
  • Repowering older wind projects which will increase efficiencies and also be economical.

Fourth Partner Energy’s Focus on Wind Energy Solutions

As 2024 paints a promising picture for wind energy in India – Fourth Partner Energy is poised to take flight. We have integrated Wind Energy offerings into our core integrated RE solutions, with a significant focus on Wind Solar Hybrid systems as well. Our aim is to maximise Renewables consumption for our corporate clients and to facilitate this, we will soon be commissioning wind parks across Karnataka and Tamil Nadu while our WSH project in Gondal, Gujarat is already operational. To know how our Wind and other Clean Energy solutions can benefit your business,
reach out to www.marketing@fourthpartner.co