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In a significant push toward renewable energy, Finance Minister Nirmala Sitharaman has increased the budget allocation for the sector by ₹9,251 crore, bringing the total to ₹26,549 crore—a 53% increase from the previous budget. Industry leaders have welcomed the move, emphasizing its strong focus on clean technology, infrastructure, and domestic manufacturing, which are expected to accelerate India’s energy transition.
Wind Energy to Play a Crucial Role in India’s Clean Energy Expansion
With growing emphasis on diversifying renewable energy sources, the latest budget highlights the potential of wind energy alongside solar power. The government’s continued investment in the PM Suryaghar Yojana and PM Kusum Scheme, along with new policy initiatives, is expected to drive the expansion of both onshore and offshore wind energy projects.
Amit Paithankar, Whole-time Director & CEO of Waaree Energies, hailed the government’s commitment to clean energy, stating that the allocation of over 21 gigawatts across various renewable energy programs is a “phenomenal boost” for the industry. “The emphasis on wind and solar energy will not only help meet India’s energy needs but also strengthen its energy security and sustainability goals,” he added.
Scaling Domestic Manufacturing for Wind Turbines
Parag Sharma, Founder & CEO of O2 Power, underscored the importance of enhancing India’s wind energy manufacturing capabilities to support the sector’s expansion. “While the push for ‘Make in India’ is crucial, the wind sector must ensure sufficient production capacity to avoid supply chain bottlenecks,” he cautioned. Sharma stressed the need for policy alignment and investment in wind turbine manufacturing, particularly as India seeks to reduce dependency on imports for critical components.
Infrastructure Development and Grid Integration
As wind energy projects expand, robust transmission infrastructure remains a key concern. Simarpreet Singh, Executive Director & CEO of Hartek Group, emphasized the importance of grid integration for large-scale wind energy adoption. “The budget’s focus on high-voltage electrical equipment manufacturing and transmission upgrades is a positive step forward,” he said. However, Singh pointed out that the lack of Right of Way (ROW) reforms remains a challenge, as transmission constraints continue to slow renewable energy deployment.
Energy Security Through Offshore Wind and Hybrid Solutions
Girish Kadam, Senior VP & Group Head of Corporate Sector Ratings at ICRA, highlighted the government’s interest in offshore wind energy development as a critical component of India’s long-term energy security strategy. While the budget prioritizes nuclear energy for large-scale power generation, Kadam noted that offshore wind projects could provide a stable and scalable renewable energy source. However, he cautioned that offshore wind deployment would require significant investment in grid infrastructure and port facilities.
State Governments’ Role in Supporting Wind Energy Growth
As India shifts toward decentralized energy generation, state governments will play a crucial role in improving distribution and transmission systems to support wind energy expansion. Vaibhav Pratap Sing, Executive Director of the Climate and Sustainability Initiative, pointed out that the budget places greater responsibility on states to upgrade power infrastructure and integrate more wind energy into the grid. He also highlighted the financial and logistical challenges in scaling up hybrid energy projects combining wind and solar power.
Ease of Doing Business and Policy Support for Wind Industry
Shilpa Urhekar, CEO of Gensol Engineering, emphasized the budget’s focus on creating a favorable investment climate for renewable energy, particularly wind power. “A streamlined regulatory framework and improved financing options will be critical for accelerating wind energy adoption,” she said. Urhekar also noted that intra-state transmission enhancements would help ensure smoother integration of wind energy into the national grid.
Outlook: Wind Energy Poised for Growth, but Challenges Remain
The industry views the budget as a comprehensive approach to India’s renewable energy transition, balancing investment in infrastructure, clean energy production, and domestic manufacturing. However, experts caution that challenges related to grid infrastructure, policy implementation, and manufacturing capacity must be addressed to fully realize the potential of wind energy.
With India setting ambitious targets for clean energy, wind power is expected to play a pivotal role in achieving a sustainable and secure energy future.
