Wind Sector Shows Signs of Revival After Slow Years

After years of sluggish growth, India's wind energy sector is showing clear signs of a comeback. Renewable Watch Magazine's latest report, 'The Wind Turns,' lays out the evidence. New installations are picking up. States are issuing fresh tenders. And developers are starting to move on projects that had stalled.

The numbers tell part of the story. India added just over 2.1 gigawatts of wind capacity in the fiscal year ending March 2023. That was up from 1.1 GW the year before. Still, it is far below the 4-5 GW annual additions the country needs to meet its 2030 target of 140 GW of wind power. The current installed wind capacity stands at about 44 GW.

What changed? The biggest factor is the shift to a 'plug and play' model. Earlier, developers had to build transmission lines and get land clearances on their own. That slowed everything down. Now, state governments and the central government are doing more of that heavy lifting. They are identifying sites, getting approvals, and offering ready-to-use plots. This cuts years off project timelines.

Gujarat and Tamil Nadu are leading the charge. Both states have strong wind resources and existing infrastructure. Gujarat has auctioned over 1.5 GW of wind projects in the past year. Tamil Nadu is not far behind. Rajasthan and Maharashtra are also coming up with new policies to attract investment.

Another push comes from hybrid projects. Wind-solar hybrids are gaining traction. They offer more stable power output than solar alone. The wind blows at night and during monsoon months, when solar generation dips. That makes hybrid power more attractive to distribution companies. Several large hybrid auctions have seen strong interest from developers like ReNew Power, Adani Green, and Tata Power.

But old problems are not gone. Payment delays from state distribution companies remain a headache. The average payment cycle stretches to over 200 days in some states. That chokes cash flow for developers. Land acquisition is still a messy process, especially in states without clear policies. And the grid needs upgrades to handle more wind power, especially from remote areas.

The government has tried to help. It reintroduced the accelerated depreciation benefit for wind projects in 2022. That allows developers to claim higher tax deductions in the early years. It also set a target of 10 GW of wind auctions per year. So far, actual auctions have lagged behind that target. But the pipeline is building.

Offshore wind remains a distant prospect. The government has identified zones off the coasts of Gujarat and Tamil Nadu. But no commercial offshore wind farm exists in India yet. High costs and lack of infrastructure keep it stuck in the planning stage. The Ministry of New and Renewable Energy says it will launch a pilot project soon, but timelines remain vague.

Manufacturing is another bright spot. Domestic turbine makers like Suzlon and Inox Wind are seeing order books fill up. Suzlon reported a net profit in the last quarter after years of losses. It now has a record order pipeline of over 1.5 GW. Inox Wind is expanding its factory capacity. Global players like Vestas and Siemens Gamesa are also active in the Indian market, though their share is smaller.

Smaller players are finding niches. Startups are building small wind turbines for farms and factories. These 'behind-the-meter' projects let businesses cut their electricity bills. They do not need long transmission lines. They just hook up to the existing grid. This segment is tiny but growing fast.

The real test will come in the next 12 to 18 months. If the tenders announced in 2023 actually get built, the revival will be real. If they stall again, the sector will be back to square one. For now, the wind is shifting, and the industry is hoping it holds.