India's renewable energy (RE) sector has gained traction in recent years, that’s why the growth is recorded at a CAGR of 14.3 % over the last five years till FY 2022. This massive growth helped India reach a milestone of 119.5 GW (as of November 22) of RE capacity. However, falling RE tariffs and government supportive policies etc. are some key factors that gave a huge thrust towards RE sector. In this overall RE capacity, the wind stands at approximately 42 GW, which is the second-most focused sector after solar, which contributes almost 52% of the total RE. Wind energy is an early start for the Indian RE sector, which contributed almost 56.4% of the total RE in FY 2017. The Government of India (GOI) has become more focused onshore in recent years, having set an ambitious target of 60 GW by the end of 2022, which they successfully achieved at 70% in November 2022, with a growth rate of 4.4 % from FY 2017 to November 2022.
In FY 2020, a total of 2.07 GW of capacity addition was recorded, which is the maximum capacity addition in the last five years. Apart from solar, wind energy is present in the following states as of November 2022: Andhra Pradesh (4.1 GW), Gujarat (9.7 GW), Kerala (5.3 GW), Madhya Pradesh (2.8 GW), Maharashtra (5 GW), Rajasthan (4.7 GW), Tamil Nadu (9.9 GW), Telangana (9.9 GW), and others (0.2 GW). These states have a huge potential of about 998 GW of onshore wind capacity, of which only about 4% has been utilized as of Nov-2022. If we look towards solar and wind, then both are contributing almost 87% of total RE installed capacity. Seeing this GOI come up with the ‘National Wind-Solar Hybrid Policy" in May-2018. Additionally, the favorable geographical location of India creates a huge potential for wind offshore as well. The 7,516 km of Indian coastline has an offshore potential of about 127 GW. Realizing the enormous potential, the Government of India set an ambitious target of installing 5 GW of offshore wind energy by the end of 2022. However, the bids are invited for 2 GW offshore, located at the coasts of Gujarat (1 GW) and Tamil Nadu (1 GW), as of April 2022.
India’s wind sector has a huge onshore potential of about 998 GW. In order to harness this potential, India has achieved only 42 GW in total wind capacity as of Nov-2022. The 96% of untapped wind energy has a huge market opportunity for industry players. Regarding offshore, the estimated potential of India is about 127 GW, which will attract domestic as well as international players in the Indian offshore wind energy market. In addition, the GoI is also giving impetus to the wind sector by policies and incentives. The key factors and various schemes and policies of the GoI that have gained attraction in the Indian wind space are as follows:
National Repowering Policy for Wind Power Projects 2022: The main objective of this policy is to utilize the onshore wind energy resource by maximizing energy yield per square kilometer with the latest technology in offshore wind turbines. The National Institute of Wind Energy (NIWE) has estimated the repowering potential of about 25.406 GW, which is almost 60% of the total installed capacity.
PLI Scheme: To increase domestic production, GOI came up with ‘Revised List of Models and Manufacturers (RLMM)" that are allowed to be used for wind energy projects. In this list, 14 manufacturers are listed with a capacity of approximately 58.85 GW per annum, which is shown in Exhibit 2.
National Wind-Solar Hybrid Policy: This policy framework is for the promotion of a large grid-connected wind-solar PV hybrid system for optimal and efficient utilization of transmission infrastructure and land, reducing the variability in renewable power generation, and achieving better grid stability. Furthermore, this policy seeks to promote new technologies, methods, and solutions involving the combined operation of wind and solar PV plants. As of FY 2022, the Solar Energy Corporation of India (SECI) has invited 4250 MW of bids for solar-wind hybrid projects, of which 201.18 MW have been commissioned so far.
National Offshore Wind Energy Policy: India has a massive offshore wind energy potential of approximately 127 GW along the Indian Ocean’s coastline, which is approximately 7200 km long. However, MNRE identified 8 regions of Gujarat and Tamil Nadu to deploy offshore wind projects. These states have a potential of about 70 GW also India has an ambitious target of 30 GW offshore by 2030. To accomplish that target MNRE announced an offshore wind bid trajectory to harness the tremendous potential of offshore wind energy as shown in Exhibit 2. The 4 GW capacity bids for offshore have also been announced by SECI on the coast of Gujarat and Tamil Nadu as of Dec-2022.
By Surya Prakash - Surya is a business analyst working in the Green Energy domain at Eninrac
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