India Wind Energy Market Outlook 2022

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Wind energy has been one of the most successful cars to ride on the road to sustainability. Wind energy can be understood as a form of solar energy that helps in the generation of electricity. The basic mechanism of a wind turbine runs around converting the wind’s kinetic energy into mechanical power. A generator is then used to transform this mechanical power into electricity. India understands and recognizes the benefits and advantages that wind energy brings. The state’s wind energy sector is led by an indigenous, in-house wind power industry and has shown significant progress. The growth of the wind industry has resulted in a large ecosystem, enhanced project operating capabilities and has widened the manufacturing scope of about 10,000 MW per annum. As of March 31, 2019, the country ranks fourth in the world for wind installed capacity of 35.6 GW, which is definitely going to rise in the years to come.   

India And The Wind Energy Sector 

Renewable energy is booming in India, and wind energy is proving to be the most successful solution to issues like depleting fossil fuels, coal imports, greenhouse gas emissions, and pollution. Wind energy, as a sustainable, non-polluting, and cost-effective source, reduces the need for fuel and transportation, resulting in green and clean electricity. Renewable Energy Sources account for 23.5% of India’s total installed power capacity of 370047.97 MW, with 37744.16 MW of wind energy installed in March 2020. Wind Energy continues to be the main source of clean energy, accounting for 43.4% of total renewable energy potential that is 87027.65 MW. 

The Indian government has set a lofty target of 175 GW of renewable energy by 2022, with 60GW coming from wind power. One of the most significant benefits of wind energy is its intrinsic ability to sustain rural jobs and economic growth. Furthermore, unlike all other types of electricity, wind energy does not use water, which is becoming increasingly scarce. Overall, the future of India with regards to wind energy is not just promising but is bright too. Energy stability and self-sufficiency can be recognized as two key factors that make wind energy what it really is.

Impact Of COVID-19 On The Wind Energy Industry 

During this weird time of the pandemic, it is critical that the energy transition remains a top priority for all governments across borders, and that the appropriate policies and legislation are in place so that the wind and other renewable industries emerge stronger than ever. The pandemic’s effects on the global economy, combined with fluctuating oil prices resulting from country-wide lockdowns across the world, exacerbated the pandemic’s influence on the renewable energy industry. For the past few years, renewable energy initiatives in different parts of the world have influenced new capacity additions in the power sector and have steadily outperformed fossil fuels. When it comes to the incorporation of renewables into the grid, India has always been a leader.

The country’s wind energy industry, which is the fourth largest in the world in terms of the market acquisition, has been severely impacted due to the spread of the pandemic. The state’s goals of obtaining 60 GW of energy by 2022 and a massive 450 GW by 2030, both of which are still on hold due to unforeseen circumstances. Moreover, another immediate impact of the pandemic seen in the industry was the delay in the projects scheduled for the year 2020.

Lacklustre Performance 

The Indian wind energy sector’s output over the last three years, at an average of 2,000 MW per year, has been underwhelming. Currently, demand for wind power is primarily generated through centralised procurement through reverse auction bids, in which the lowest bidder wins the contract. Although this enhances transparency in tariff determination, industry experts say the figures are unpleasant. Representatives from the sector are trying to give out suggestions to improve the numbers. 

Since India produces some of the world’s cheapest international-standard wind turbines, an export policy is required to boost its market share from 2% to 8%. With global technology at its disposal, Indian manufacturing can ramp up quickly while also speeding up component production. The government has set a target of 140 GW of wind power by 2030, which means that between now and 2030, or 10 years, we will need to build and commission approximately 10.3 GW of wind power, every year. Even though this seems like a tall target, the representatives are optimistic that they will achieve it.

Conclusion 

It is likely that India will fall short of its ambitious target for the wind energy sector for 2022. Side-lining the disappointment, India still has a long way to go. Since nearly 80% of the equipment is manufactured in India, the wind energy sector in the country has been largely self-sufficient. With the numerous environmental as well as economic benefits brought by the wind energy sector, the government is still looking out for various guidelines and regulations to boost the industry. The wind being the most abundant power available on Earth has a lot of potential to take the economy to new heights.

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