A new report by MEC+ & GWEC highlights the evolving role of wind in India’s energy mix towards 2025

India’s renewable market both, in Utility PPA and Corporate PPA, continued to advance in 2020 despite the pandemic. New tenders, new concepts, new capital, and new policies emerged throughout the year even though installations and execution were hit. India awarded 0.97 GW of new Wind power-based capacity in standalone tender and an estimated 2.3 GW of wind capacity in the wind-solar hybrid, peak-power, and round-the-clock formats at continuously attractive prices. The interest from large corporates in doing green PPA market grew significantly on the back of commitment towards ESG goals and declining cost for taking direct delivery of power from IPPs rather than the utilities. Both these trends are likely to continue and strengthen wind’s role in the energy mix.

Pricing of hybrid and role of wind are attractive to customers

The pricing for standalone wind tender declined from INR 3/KWh (USD 40/MWh) in 2020 to INR 2.77/kWh (USD 38/MWh) in 2021. Hybrid tenders concluded in the range of INR 2.41-2.42/kWh (USD 33/MWh). Hence, establishing the strong value proposition that can be offered by the wind for future tech-neutral tenders.

Wind’s role in India is set to evolve from a cost-effective RE towards a value-focused role of providing power during the day in combination with solar and other technologies, driven by:

  • Complementarity to solar in generation profiles in terms of the time of the day and seasonality. Wind supplies power during peak consumption hours in a day. Seasonally, wind production is strong during the monsoon season when solar resource is lower, while the reverse is the case during November and December.
  • Higher annual CUFs in the range of 35% to 40% as compared to solar operating at 16% to 20%
  • A more consistent daily generation profile as compared to solar, which is available for 6-7 hours a day

Nearly 6% of the total installed captive power plant in India comprises wind as compared to ~ 3% in solar

The growth in wind corporate PPA was driven by attractive tax benefits offered to corporates before 2015. Over the last five years, the rapid decline in the cost of solar modules and the limited size of projects has driven preference for solar technology. But it is likely to reach the limit of what can be achieved with solar alone. The sustainability ambitions, the requirement of Virtual PPA, and the need for load profile can only be met with the wind playing a role in the PPA. Moreover, the development in utility-scale hybrid projects will accelerate the adoption of hybrid corporate PPA.
This month, GWEC & MEC+ publish the second instalment of the India Wind Energy Outlook- “Wind: The critical link to India’s clean energy transition” to consolidate the developments and build a perspective on growth from the point of view of the wind sector, in current & future role as hybrid in both the utility-scale and corporate PPA market.

The report talks about the role of wind within India’s clean energy transition story in detail and explores topics including:

  • Scenario-based forecast for wind installations (2021-25)
  • Driver and challenges in the central, state, and C&I market
  • The emergence of the role of hybrid power procurement
  • Demand for wind procurement and pipeline status
  • Opportunity for India as a wind supply chain hub
  • Deep-dive of renewable corporate procurement dynamics with a specific focus on wind

MEC+, along with GWEC, will publicly launch the report on 10th June at 4:30 PM IST and with a webcast on report highlights and panel discussion between industry stalwarts. Click here to register for the webcast.