In the global energy transition, India is one of the keystone countries for clean energy growth, coal phaseout and mobilisation of investment to power a low-carbon economy. As one of the largest onshore wind markets in the world in installation terms, India is also a primary market for supply, trade and investment opportunities in wind energy.
The Government’s ambitious target of achieving 60 GW of installed wind power capacity by December 2022 is part of India’s INDC (Intended Nationally Determined Contribution) under the Paris Agreement. Out of this volume, nearly 38 GW of wind power capacity has already been commissioned as of February 2020, with more than 9 GW under implementation and 1.2 GW under bidding. But greater efforts are needed to nearly double installed capacity by 2022 – less than three years from now – and looking further, to deliver the Government’s 2030 target of 450 GW of renewable energy.
Years of strong growth made India’s wind sector a forerunner in emerging technologies, supply chain management and workforce development. However, the industry has faced critical challenges in recent years, demonstrated by a series of undersubscribed auctions and abandoned capacity.
Low prices captured at auction and market slowdown have made India a prime case study for the broader questions facing the global wind industry, concerning market design and long-term industry sustainability.
But India shows promising signs of renewed growth, due to the collective efforts of industry and Government. Recent policies such as the MNRE’s (Ministry of New and Renewable Energy) decision to lift tariff caps from wind tenders and the initiation of green bonds in India contribute to a more positive outlook. Combined with trends of digital transformation, AI (Artificial Intelligence) and power casting, the industry will collectively work to rebuild confidence in India’s wind energy market. With greater efforts, collaboration and engagement with Government, India can once again take a position at the forefront of the global wind market in coming years.
India market outlook through 2022: Upcoming webinar and report
In May, GWEC and MEC+ will publish a comprehensive report on the market outlook of the India wind energy sector through 2022. Ahead of this report, we are holding a webinar in April to discuss India wind energy market insights and realities in detail.
Francis Jayasurya, India Director, GWEC