Report Overview

The Indian government’s supportive policies (RPO targets) and fiscal and other incentives, private sector’s increasing investments and participation, and relative cost competitiveness of wind power in the overall energy mix are expected to drive India Wind Energy Market during the forecast period between 2024 and 2030.

India Wind Energy Market – Industry Trends & Forecast Report, 2030

India Wind Energy Market size was estimated at USD 4.8 billion in 2023. During the forecast period between 2024 and 2030, India Wind Energy Market size is projected to grow at a CAGR of 11.8% reaching a value of USD 10.4 billion by 2030. Prominent drivers of the market include the rising tender volumes, the country’s strong wind manufacturing capacity, and growing opportunities to capitalize on global supply chain challenges. Also, the Government of India ambitious target of 500 GW of renewable energy by 2030, with 140 GW specifically from wind energy, significantly propels market growth. The increasing demand for renewable, non-polluting, and affordable energy sources further boosts the market. Wind energy's ability to support rural employment and economic development, coupled with its environmental benefits, such as no water consumption and zero CO2 emissions, enhances its appeal. Cost-effectiveness and rapid construction capabilities make wind farms a competitive option compared to other renewable energy sources. Advancements in wind potential estimates at greater hub heights offer substantial growth opportunities, while government initiatives like "Make in India" and "Atmanirbhar Bharat" strengthen domestic manufacturing capabilities, positioning India as a major player in the global wind supply chain.

Wind Energy – Overview

Wind energy is the process of harnessing the kinetic energy generated by wind and converting it into electrical power using wind turbines. This renewable energy source is non-polluting, sustainable, and helps reduce reliance on fossil fuels, thereby decreasing greenhouse gas emissions and environmental pollution. Wind energy systems can be installed both onshore and offshore, contributing to clean electricity production and promoting energy security and sustainability.

India Wind Energy Market

Growth Drivers

Cost Competitiveness of Wind Power in the Overall Energy Mix

India Wind Energy Market stands out for its cost competitiveness within the country's energy portfolio. With an installed capacity of 42,633 MW and ambitious targets set by the government, wind power offers a sustainable and economically viable solution. Its free fuel source and minimal environmental impact make it a compelling choice amid concerns over fossil fuel dependency and emissions. The ongoing technological advancements and favorable economics further enhance its role in India's energy security strategy, positioning wind energy as a pivotal component in the nation's renewable energy journey.

Supportive Government Policies and Incentives like RPO Targets and Fiscal Incentives

India's Ministry of New & Renewable Energy (MNRE) has instituted robust policies to drive the adoption of wind energy, including Renewable Purchase Obligation (RPO) targets and fiscal incentives. These initiatives aim to achieve 140 GW of wind energy by 2030, contributing significantly to the nation's renewable energy goals. The evolution from Ministry of Non-conventional Energy Sources (MNES) to MNRE underscores the government's commitment to reducing reliance on conventional fuels and promoting sustainable development through renewable sources like wind energy. Such policies not only spur investments but also foster a conducive environment for the growth of India Wind Energy Market.

Challenges

Impact of Domestic Market Slowdown

The slowdown in India's domestic wind energy market in recent years has significantly under-utilized manufacturing capacity, restraining overall sector growth. Challenges such as the intermittent nature of wind, environmental concerns, and logistical issues have compounded this issue. Despite being the third-largest annual market globally, India Wind Energy Market faces hurdles in scaling up due to inadequate utilization of existing manufacturing capabilities. Addressing these challenges requires strategic initiatives to boost demand, enhance grid integration capabilities, and streamline regulatory processes. A concerted effort to rejuvenate the domestic market and optimize manufacturing capacity is crucial for India to realize its renewable energy targets effectively.

Impact of Escalating Geopolitical Tensions on India Wind Energy Market

Escalating geopolitical tensions among countries across regions could have a significant impact on the growth of India Wind Energy Market. These tensions often lead to uncertainties in regulatory frameworks, affecting investment confidence and project timelines. Increased risk premiums on financing, coupled with potential supply chain disruptions for critical components sourced internationally, may raise project costs. Furthermore, geopolitical instability can influence policy decisions regarding energy independence and foreign investments, altering market dynamics and growth projections. Stakeholders in the India Wind Energy Market must navigate these challenges by diversifying supply chains, strengthening local manufacturing capabilities, and advocating for stable regulatory environments to mitigate risks and sustain growth in renewable energy deployment.

India Wind Energy Market

Segmental Coverage

India Wind Energy Market – By Location

By location, India Wind Energy Market is bifurcated into Offshore and Onshore segments. The onshore segment holds a higher share in India Wind Energy Market by location, with nearly 41 GW of installed capacity, positioning the country as the fourth-largest market globally. Despite this strong foundation, recent years have witnessed a slowdown in annual capacity additions, posing challenges to India's climate goals. Revitalizing growth hinges on strategic policy reforms to enhance auction mechanisms and bolster supply chain resilience. Collaborations among government, industry, and stakeholders is crucial to fully harnessing the potential of onshore wind power, ensuring energy security and advancing India's path towards net-zero emissions.

India Wind Energy Market – By End User

Based on end user, India Wind Energy Market is divided into Industrial, Commercial, and Residential segments. The industrial end user segment holds the highest share in India Wind Energy Market. The industrial segment is a major consumer of wind energy, utilizing it to power manufacturing plants, factories, and industrial complexes. Wind energy source offers a sustainable and economical means to fulfill the sector's substantial electricity needs, concurrently reducing carbon footprints and lessening reliance on traditional fuels.

India Wind Energy Market – By Region

The in-depth research report on India Wind Energy Market covers the market in the country’s major regions: North India, South India, East India, and West India regions. Regionally, West India holds the highest share in India Wind Energy Market and is expected to maintain its dominance during the forecast period. Gujarat stands out with its extensive 1,600 km coastline offering favorable wind speeds for electricity generation. The state boasts a significant gross potential of 7,362 MW for wind power, supported by both onshore and potential offshore projects. Gujarat has already established 20.70 MW in wind mill power projects, with plans for further expansion. Initiatives like exploring offshore wind projects highlight Gujarat's commitment to renewable energy under national climate initiatives.

Competitive Landscape

Major players operating in India Wind Energy Market include Inox Wind Limited, Suzlon Energy Limited, General Electric Company, Siemens Gamesa Renewable Energy, Vestas Wind Systems AS, Envision Group, Wind World India Ltd, Tata Power Company, and Enercon GmBH. To further enhance their market share, these companies employ various strategies, including mergers and acquisitions, partnerships, joint ventures, license agreements, and new product launches.

Recent Developments

• In May 2024 - Suzlon Group announce that it had secured a significant order to develop 402 MW of wind energy projects for Juniper Green Energy. The company agreed to supply and commission 134 wind turbine generators with advanced technology.

Scope of the Report

By Location

• Offshore

• Onshore

By End User

• Industrial

• Commercial

• Residential

By Region

• North India

• South India

• East India

• West India