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India’s wind energy sector is a dynamic and rapidly growing landscape, addressing critical challenges while capitalizing on significant opportunities. With the global wind energy sector reaching a cumulative installed capacity of 906 GW in 2022, India ranks fourth worldwide in installed wind power capacity, highlighting its pivotal role in achieving ambitious targets for non-fossil fuel capacity and Net Zero by 2030 and 2070.
India’s potential for wind energy is substantial, with the National Institute of Wind Energy (NIWE) indicating a wind power potential of 302.25 GW at a hub height of 100 meters, 695.50 GW at 120 meters, and 1,164 GW at 150 meters. Despite this significant potential, only 6% of the assessed capacity has been realized, signaling room for substantial growth. Most of this potential exists in seven windy states: Andhra Pradesh, Gujarat, Karnataka, Madhya Pradesh, Maharashtra, Rajasthan, and Tamil Nadu.
To encourage domestic manufacturing of Wind Turbine Generators (WTG), the Indian government provides various financial incentives. These include custom duty exemptions on critical components, a waiver of Inter-State Transmission System charges for projects commissioned by June 30, 2025, and Renewable Purchase Obligations (RPO) up to 2030. Additionally, standard bidding guidelines are in place for tariff-based competitive bidding processes for procuring power from grid-connected solar PV and wind projects.
India is a major wind turbine manufacturing hub, with leading global and Indian companies such as Suzlon Energy Ltd., Siemens Gamesa Renewable Power Private Ltd., and GE India Industrial Private Ltd. The country boasts an annual production capacity of approximately 15,000 MW, with over 17 wind turbine manufacturing companies exporting wind turbines and blades to countries like Australia, Brazil, Europe, and the USA.
The domestic manufacturing capacity of various wind turbine components reveals significant strengths and areas needing development. For instance, towers account for 26% of the total cost of WTG setup, with a domestic manufacturing capacity of 5,200 MW per annum. Blades, which account for 22% of the cost, face challenges in terms of availability, leading to significant imports. Gearboxes, contributing 12% of the cost, have a domestic manufacturing capacity of 8,000 MW per annum.
Despite these strengths, the sector faces challenges, particularly concerning cybersecurity. The import of wind sector components, especially from China, raises specific cybersecurity concerns. Issues include the location of OEMs’ data collection servers outside India, vulnerabilities in data and power system network operations due to unauthorized updates of wind plant devices by OEMs, and other cybersecurity threats.
Additionally, the competition with China, which holds a 61% share of global wind turbine assembly capacity, presents a significant challenge. The report addresses the hurdles faced by the Remission of Duties and Taxes on Exported Products (RoDTEP) scheme, aimed at boosting India’s exports. It also emphasizes the exclusion from the Advance Authorization scheme and increased supply chain costs as critical issues needing resolution.
In conclusion, India’s wind energy sector holds immense potential and is supported by robust policy frameworks aimed at encouraging domestic manufacturing and addressing cybersecurity threats. The continuous efforts in developing domestic manufacturing capacity, coupled with strategic financial incentives, position India as a significant player in the global wind energy market. However, to fully realize its potential, the sector must overcome challenges related to component imports, cybersecurity, and global competition.
Please view the full report here for more details.
