Wind Energy Can Save India Rs 2.3 Lakh Crore: Union Minister Pralhad Joshi

NEW DELHI, India can save Rs 2.3 lakh crore over the life of wind power projects if it builds more wind farms, Union Minister for New and Renewable Energy Pralhad Joshi said on Tuesday.

Speaking at a conference in New Delhi, Joshi said the savings would come from replacing costlier coal-fired electricity with cheaper wind energy. The figure, he explained, is based on the difference in levelised cost of electricity between wind and coal over a 25-year project span.

"Wind energy is not just clean, it is now cheaper than coal," Joshi told the gathering. "We have the potential. We need the execution."

India has an installed wind capacity of about 47 GW. The government has set a target of 140 GW by 2030. But additions have slowed in recent years. In 2023-24, the country added just 2.8 GW of wind capacity, far below the pace needed to hit the 2030 goal.

Joshi pointed to bottlenecks. Land acquisition remains a hurdle. So does grid connectivity in windy states such as Gujarat, Tamil Nadu, Karnataka, and Maharashtra. He urged state governments to speed up clearances and called on developers to invest in repowering older turbines.

"We have old turbines that run at 10-15% capacity factor," he said. "Replace them with modern ones. That alone can double output without taking new land."

The minister also pushed for offshore wind. India approved its first offshore wind policy in 2015, but no project has been built. In June 2024, the government called bids for 4 GW of offshore wind off the coasts of Gujarat and Tamil Nadu. Joshi said those bids should close by early 2025.

"Offshore wind is expensive today, but costs will fall as we build scale," he said. "We must start now."

The Rs 2.3 lakh crore figure assumes a wind capacity of 140 GW by 2030 and a coal price of Rs 4 per kilowatt-hour. Wind power today costs about Rs 2.8-3.2 per kWh under long-term power purchase agreements, according to data from the Central Electricity Authority.

Critics point out that wind is intermittent and requires storage. Joshi acknowledged that but said battery costs are dropping fast. He noted that the government is also pushing pumped hydro storage.

"We are not saying wind alone will replace coal," he said. "But a mix of wind, solar, and storage can do the job."

India's peak power demand hit 250 GW in May 2024. Coal still supplies about 70% of the country's electricity. The government plans to add 80 GW of coal capacity by 2032, even as it pushes renewables.

Joshi said the two goals are not contradictory. "We need base load. Coal gives that. But every megawatt of wind we add saves money and emissions."

India has pledged to install 500 GW of non-fossil fuel capacity by 2030. As of October 2024, it has about 200 GW. Wind accounts for roughly a quarter of that.

The wind industry welcomed Joshi's comments. "The minister's cost-saving estimate is a strong signal," said Sumant Sinha, CEO of ReNew Power. "But we need policy certainty, especially on land and transmission."

India's wind resource is among the best in the world. The National Institute of Wind Energy estimates a technical potential of 1,200 GW at 120 meters hub height. Less than 4% of that has been tapped.

Joshi ended his speech with a blunt message: "The savings are real. The technology is ready. It is now up to us to build."