Wind Energy Sector in India – Significance & Challenges (2025)

Significance of Wind Energy in India

• Major Contributor to Renewable Goals:
  As of March 2025, India’s cumulative installed wind power capacity reached 50.04 GW, making it the world’s fourth-largest wind energy market after China, the United States, and Germany8. Wind energy is a key pillar in India’s target of achieving 500 GW of non-fossil energy capacity by 2030 and net-zero emissions by 2070.
• Rapid Capacity Expansion:
  India added 4.15 GW of wind power in FY 2024–25, up from 3.25 GW the previous year, with a strong push from government incentives and policy reforms. The sector is projected to grow at a CAGR of over 11% to reach nearly 89.5 GW by 2030.
• State Leaders:
  Gujarat, Karnataka, and Tamil Nadu are the leading states, together accounting for a major share of new installations and cumulative capacity.
• Domestic Manufacturing Strength:
  India has a robust wind turbine manufacturing industry with an annual production capacity of about 18,000 MW, supporting both domestic deployment and export.
• Hybrid Projects:
  The rise of hybrid power projects (wind-solar) and firm and dispatchable renewable energy (FDRE) initiatives is driving new investments and grid stability.

Key Drivers

• Policy Support:
  Reduced tariffs, renewable purchase obligations, and waivers on inter-state transmission charges (ISTS, until June 2025) have spurred investments and accelerated project commissioning.
• Global Climate Commitments:
  India’s wind sector is crucial for meeting Paris Agreement targets and COP28 commitments, as well as for sustainable development goals (SDGs).

Challenges Facing the Wind Energy Sector

• Policy & Regulatory Delays:
  Instability in policy, delays in project permitting, and inconsistent state-level regulations hinder timely project execution.
• Grid Infrastructure Gaps:
  Underinvestment in grid upgrades and integration challenges limit absorption of new wind capacity, especially in remote or high-potential regions.
• Financial Pressures:
  Rising interest rates, inflation, and trade protectionism have increased project costs and affected the viability of some wind projects.
• Land Acquisition Issues:
  Securing land for large-scale wind farms remains a major bottleneck, particularly in densely populated or ecologically sensitive areas.
• Aging Turbines & Repowering Needs:
  Many early wind installations are now outdated. Repowering these sites with modern, efficient turbines is essential for maximizing output and land use.
• Offshore Wind Still Nascent:
  Despite high potential (36 GW in Gujarat, 35 GW in Tamil Nadu), offshore wind energy remains largely untapped due to high costs and technological challenges.
• Supply Chain and Rare Earth Materials:
  Ensuring a stable supply of rare earth materials for turbine manufacturing and reducing import dependence are ongoing concerns.

Way Forward

• Policy Stability & Regulatory Streamlining:
  Fast-tracking clearances, extending ISTS waivers, and harmonizing state and central policies can accelerate growth.
• Grid Modernization:
  Investments in grid infrastructure and storage solutions are needed to integrate more wind power reliably.
• Focus on Repowering & Offshore Wind:
  Upgrading old wind farms and incentivizing offshore projects can unlock new capacity and efficiency.
• Encouraging Hybrid Projects:
  Promoting wind-solar hybrids and FDRE projects will enhance grid stability and renewable energy reliability.

Government Initiatives

International Cooperation

• Collaborations with Denmark, UK, Germany for offshore expertise
• IEA Wind TCP participation for technical R&D
• Part of International Solar Alliance and Clean Energy Ministerial

Prelims Bits

Conclusion

Wind energy is central to India’s clean energy transition and climate commitments. While the sector has shown impressive growth, addressing policy, infrastructure, and technological challenges is crucial for sustaining momentum and realizing India’s ambitious renewable energy targets

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