GWEC and MEC Intelligence (MEC+) have released the second edition of their joint report on “India Wind Energy Market Outlook 2025”, which provides a detailed analysis of wind power’s role as a critical link in the energy transition in India. The report aims to give a perspective on wind power growth in the country from the point of view of the wind sector, and the current and future role of the industry in supporting India’s decarbonisation and climate goals.
Last year’s outlook expected 2020 to be a break-out year for wind installations in India, thanks to a large pipeline and multiple policy interventions to ease execution bottlenecks. However, the impact of the COVID-19 lockdowns in India was more severe than anticipated.
Nonetheless, wind is a critical link to enable India’s green energy transition, and the report forecasts a surge in wind power over the next 5 years. The report also sets out actions needed to speed up project installation to support the country’s ambitious goal of installing 450 GW of renewable energy capacity by 2030.
Key findings:
- Wind will be a critical link in India’s clean energy transition and green recovery, helping to meet the country’s surging energy demand while avoiding carbon emissions and creating new jobs and industrial opportunities.
- India is expected to install nearly 20.2 GW of wind power capacity between 2021-2025, a growth of nearly 50% compared to the 39.2 GW currently installed in the country.
- Over the next 5 years, 90% of new installed wind capacity will come from central tenders, followed by corporate procurements and state markets.
- New opportunities like repowering, hybrid projects, offshore wind, and corporate PPA’s can help scale-up India’s wind power capacity and deliver affordable, clean energy across the country.
- Greater 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.
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.
Sidharth Jain, CEO and Founder, MEC Intelligence (MEC+), comments, “India’s wind market moved forward last year with new tenders, new capital, and new policies. Wind will be the central axis of renewable energy portfolios as we move from renewable energy making up less than 10% of the country’s energy matrix today, to more than 30% by the end of this decade. We will see higher revenue for electricity generation that matches the buyer’s needs, which means generation of electricity at the time and the quality they need. This is where wind will be critical.”
“In 2020, we saw a clear trend of hybrid projects, with procurement occurring across central, state, and corporate markets, as policymakers sought to find ways to scale-up renewables while reducing the cost of renewables integration. We also saw corporate renewables procurement, an essential tool in the sustainability toolbox for companies, start to wake-up to the benefits of hybrid renewable energy systems, but remains a largely untapped market,” Jain continues.
Martand Shardul, Policy Director, GWEC India, says, “Wind is a high-value resource and a critical link in India’s clean energy transition, which can put the country on a path to a prosperous future while helping it realise its ambitious decarbonisation plans. It is encouraging to see the market beginning to bounce back, but to drive a post-pandemic green recovery and realise its climate goals, India will need to adopt a more aggressive climate emergency approach and set clear short-term milestones to enable an even more rapid uptake of wind projects.”
“Over the past few years, the Indian government has been proactive in addressing bottlenecks with land and grid availability. Moving forward, further action will be required to unleash India’s vast wind potential, such as strengthening consensus and coordination to ramp up projects installation between central and state governments as well as developing a clear roadmap to help the planning of supply chain, infrastructure, and finance,” Shardul adds.
