A new report, India Wind Energy Market Outlook 2025, jointly released by the Global Wind Energy Council (GWEC) and MEC Intelligence (MEC+) finds that India is expected to add nearly 20.2 GW of new wind power capacity between 2021-2025.
This would increase the country’s 39.2 GW wind market by nearly 50 per cent and is a clear signal that the market is beginning to bounce back after a slow-down in recent years.
Key points of the report:
• India is the world’s fourth-largest wind power market.
• Wind power continues to be a major constituent of India’s renewable energy (RE) based grid-connected power generation mix and constitutes 4 per cent of the overall share of electricity generation in the country.
• Between 2010-2011 and 2019-2020, wind generation capacity grew at a Compound Annual Growth Rate (CAGR) of 11.39 per cent while the overall installed electricity capacity witnessed a CAGR of 8.78 per cent.
• Although 2020 was originally forecasted to be a break-out year for wind power in India with a large pipeline and multiple policy interventions to ease bottlenecks, the impact of the COVID-19 pandemic was much more severe than anticipated.
• Forecasts expected the country to install 3.3 GW of wind power in 2020, but ultimately only 1.1 GW was installed, with the remaining capacity either being pushed into 2021 or dropped by developers.
• However, the report finds that the pace of new installations is likely to double over the next two to three years compared to the average annual installations since 2017 when the market began to slow down.
• India currently has a pipeline of projects of 10.3 GW in both central and state tenders, which are expected to drive installations until 2023.
• The market post-2023 will likely be driven by nearly 10 GW of new capacity awarded to wind projects, mainly through hybrid projects which are becoming increasingly important for the country’s ‘round-the-clock’ power initiative.
• Going forward, greater consensus and coordination between central and state governments around wind targets, supply chain utilisation, and the definition of a clear market roadmap are some of the key actions needed to put India on a pathway to meet its decarbonisation and renewable energy goals.
• Post-2025, the market offers multiple green shoots including those of offshore wind, repowering, and developing India as a wind export hub, as well as the largely untapped potential of the largest commercial and industrial (C&I) consumers in India.
• To unlock the full potential of wind energy, the government can strengthen consensus and coordination among agencies with a consistent and aligned market roadmap, clarifying volumes, frequency, and composition of new tenders.
• Additionally, the promotion of technology exchange and alignment to the global supply chain can create export-oriented opportunities for the Indian manufacturing base.
The Global Wind Energy Council (GWEC) is a global trade association for the wind power industry representing over 1,500 companies, organisations and institutions in more than 80 countries.
It works closely with national governments, policy makers and international institutions to give them transparent information about the benefits and potential of wind power, enabling them to make informed decisions about national energy policies.
GWEC India was established in 2020 as a single advocacy and research body representing the entire value chain of India’s wind industry.