India Wind Turbine Market is anticipated to register a higher CAGR
in the forecast period 2024-2028 due to the increasing demand for
renewable electricity, rising technological advancements, and increasing
government investments and projects. For instance, India presently has 10.3
GW worth of projects in both national and state bids, and these projects are
anticipated to power installations through 2023. After 2023, approximately 10
GW of newly granted wind capacity will drive the market, mostly through hybrid
projects that are becoming more crucial for the nation's
"round-the-clock" electricity strategy.
Wind turbine is a system that turns kinetic energy of
wind into electricity. This electrical energy is further transferred to a power
grid and from the power grid the electrical energy gets transmitted to the
consumer.
India is the fourth largest country in terms of
installed wind power capacity in the world after China, USA, and Germany. India’s
current wind installed capacity stands at about 28 GW, which is expected to
increase to 60 GW by 2022. Further, India’s wind power potential now stands
at around 300 GW at a hub height of 100 meters. India’s onshore wind industry
is more commercially active than the offshore industry. The Government of India
has taken a major policy push to develop offshore wind power segment in India.
India has a strong local wind turbine manufacturing ecosystem with major global
and Indian players present. These companies manufacture and export wind
turbines to countries such as Australia, Brazil, Europe, and the USA. Although
the local wind turbine manufacturing ecosystem in India is strong, some
manufacturers do import critical high value components.
Furthermore, the government of India has revised the
renewable energy power capacity addition targets to 175 GW by 2022. In addition
to increasing the solar power capacity by five times to 100 GW by 2022, the
government has announced that 60 GW of power would be contributed from the Wind
Power sector. The National Institute of Wind Energy (NIWE) estimated India’s
Wind potential at 49 GW at 50m height. However, at the 80m hub height, the
potential grows to 102 GW. Furthermore, at the 100m hub height, the potential
grows significantly to about 300 GW. Among other initiatives, key targets of
the Indian government include reaching 40% power installed capacity from
non-fossil-fuel-based energy resources by 2030. As a result, the demand for
wind turbine is likely to grow along with the increasing solar power capacity
initiatives.
India Wind Turbine Market: Drivers
The merchandise will increase across residential
applications due to rising electricity demand, rapid urbanization, rising
living standards, and greater electricity consumption. The utility turbine
industry situation will be boosted by the government's multiple attempts to
increase the share of renewable energy in overall power generation across
various industrial segments. The country's continued local production facility
growth and rapid industrialization will improve the business environment. The
demand for wind turbines is growing quickly due to the speedy transition away
from dirty, renewable energy sources like wind and solar power. The significant
rise in electricity costs is fueling demand for accessible, affordable energy
from renewable sources, which is boosting the market for wind turbines in
India.
Moreover, technological improvements like
increased-capacity wind turbines, floating Wind Turbines, have brought the
general cost of wind generation to the lowest level and opened new offshore
locations like deep water that was previously inaccessible because of lack of
investment and technology. These developments are accelerating the adoption of
wind generation across the country and are expected to supply significant
opportunities for the players to enter the market.
India Wind Turbine Market: Challenges
Legacy Challenges- Legacy issues such a lack of
suitable infrastructure for power transmission and evacuation, delays in
obtaining licenses and permissions, and land acquisition, etc. continue to
drive up the price of project execution.
Surge In Commodity Prices- Turbine OEMs are facing cost
pressures due to cost inflation of related raw materials and critical wind
turbine components. Steel is a major component used in turbine manufacturing.
The resurgence of steel demand from the pandemic, shipping disruptions, and
increased power outages in mainland China have led to an increase in commodity
prices inclusive of steel, with expected prices to be 25-30% higher than 2021.
Recent Development in India Wind Turbine Market:
Government Launches Scheme to Procure 4,500 MW
Electricity- Under the SHAKTI Policy's provision for transparently utilizing
and allocating koyala resources, the Government of India's Ministry of
Electricity has announced a proposal to purchase 4,500 MW of power over a
five-year period on a finance, own, and operate (FOO) basis (coal). PFC
Consulting Ltd, a completely owned subsidiary of Power Finance Corporation (PFC
Ltd), has been appointed by the power ministry as the scheme's nodal organization.
About 27 million tonnes of dry fuel per year must be set aside by the coal
ministry for the delivery, which will begin in April 2023.
Amazon Announces 300 MW Wind-Solar Hybrid Projects in
India, First Such Project Globally- In November 2022, Amazon India
has announced its first wind-solar hybrid projects in India, marking a big
shift to clean energy. The two projects with a capacity of 300 MW will be based
in Madhya Pradesh and Karnataka, and once operational, will produce 1163 GW
hours of clean power.
India Plans USD 2 Billion Incentive for Green Hydrogen
Industry- Indian Government plans to invest USD 96 billion in
green hydrogen and its derivative green ammonia by 2030. Moreover, the
government is planning a USD 2.2 billion incentive in the upcoming budget that
aims to reduce the production cost of green hydrogen by a fifth, over the next
five years.
India Needs a Doubling of Installs to Deliver on PM
Modi’s 450 GW By 2030 Ambition- India installed a record 15 GW of
new renewable energy capacity in 2021/22, giving visibility to PM Modi’s
ambitious vision of 450GW by 2030. This would require a new investment in
firmed renewables and grid transmission capacity of USD 500 billion.