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Emerging trends in the Wind Power Industry in India

Analysis
Typography

Wind energy sector in India is growing at an impressive pace.

As of March 2017, India was the fourth largest producer of wind energy after China, USA, Germany with an installed capacity at around 32279.77 MW. Growing environmental consciousness and government incentives to entrepreneurs and investors are making this industry a viable business proposition. New technological developments in wind power generation design have contributed to the significant advances in wind energy penetration across the nation thereby ensuring optimum utilization of wind power potential of the country. The industry is firmly on track to meet the national target of achieving wind powered installed capacity of 60GW by 2022.

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India Wind Energy Installation Capacity, 2012-16 & 2022 (MW)

MNRE has incorporated Centre for Wind Energy Technology (C-WET) as technical focal point for development of wind energy in India. This agency is responsible for wind resource assessment in the country. According to C-WET (Centre for Wind Energy Technology) estimation, Gujarat, Karnataka, Andhra Pradesh, Tamil Nadu and Maharashtra are leading states in wind energy potential.

Wind Power Potential of Major States in India (As on March 2017)

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According to government estimates, onshore potential of wind power in India is around 302GW. Moreover, wind power projects in the country are likely to attract investment worth USD 15 billion during 2015-2020. This offers huge scope for the growth of wind energy projects across the nation.

In the last five years, there has been a tremendous growth in renewable energy in India. This is due to the significant drop in tariffs from wind energy plants. In February 2017, power tariffs from wind power hit a record low and reached INR3.46/kWh owing to ongoing technological improvement in wind energy sector, which has enhanced the overall efficiency.

The Indian government has taken several policy initiatives, such as ‘National Offshore Wind Energy Policy’, which aims to harness offshore wind potential of the country. The policy also focusses on allocation of offshore wind energy blocks, coordination and allied functions with related ministries and agencies. Moreover, India aims to achieve 100% rural electrification by the end of May 2018, under the Deen Dayal Upadhyaya Gram Jyoti Yojana (DDUGJY) scheme. This would encourage the installation on new wind power projects in the rural parts of the country. The reduction in power tariff, technological advancement and introduction of industry friendly policy would pave the way for the growth of wind energy sector in the country.

By Jaideep Kumar, Consultant, TechSci Research