India’s Wind Market Set to Bounce Back With Nearly 50% Growth Over Next Five Years


Reading Time: <1 minutes

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, the world’s fourth-largest wind power market, 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% and is a clear signal that the market is beginning to bounce back after a slow-down in recent years.

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.

ALSO READ  IRENA/GWEC Report Identifies Key Permitting Reforms to Unlock Offshore Wind’s Potential and Accelerate Energy Transition

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.

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 said Sidharth Jain, CEO and Founder, MEC Intelligence (MEC+).

ALSO READ  NTPC REL Successfully Commissions 50 MW Dayapar Wind Energy Project Phase-I Installed By Inox Wind

“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 commented ”Martand Shardul, Policy Director, GWEC India

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.