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WIND- THE CRITICAL LINK TO INDIA CLEAN ENERGY TRANSITION

Indian wind power market installations and execution got hit last year due to COVID-19. Despite the pandemic, wind still remains the central axis of India’s renewable energy market and is expected to install nearly 20.2 GW wind capacity over the next five years.

Our report “India wind energy market outlook 2025” published along with GWEC talks in detail about the emerging role of wind power in India’s clean energy transition and how it is going to bounce back over the next five years. This report is the follow-up of the wind outlook towards 2022 published last year; and extends the outlook horizon to 2025. It deciphers the changes that emerged in the market throughout the last year with new tenders, new policies, new infrastructure developments, and new investments. It consolidates all these developments and builds a perspective on the growth of the wind sector in current and future role.

The report will cover the topics such as:

  • 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

KEY FINDINGS

In our outlook last year, we expected 2020 to be a break-out year for wind installations in India owing to a large pipeline and multiple policy interventions to ease execution bottlenecks. These interventions were as follows:

  • Land policy in the key states of Gujarat and Tamil Nadu was streamlined, and land allocations restarted
  • Grid infrastructure was augmented (or shortly to be completed) in critical bottleneck substations
  • Power supply agreement between SECI and DISCOMs were expedited

However, the impact of the COVID-19 lockdowns in India was more severe than anticipated. The market installed only 1.1 GW out of the 3.3 GW originally forecasted for 2020

The market is set to bounce back with nearly 20.2 GW installed wind power capacity between 2021-2025 with a prominent role in Hybrid. Policymakers started experimenting with multiple formats of hybrid projects to explore the complementarity of large-scale wind and solar. We also saw procurement in all three market segments – central, state, and corporate market for new hybrid projects. The country awarded 0.97 GW of new 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 outlook for the years 2024 and 2025 is driven by the fundamentals of hybrid projects which is going to establish wind energy as a strong value proposition for future tech-neutral tenders.

In the long term, new opportunities such as repowering, hybrid projects, offshore wind, and corporate PPA’s can help scale-up India’s wind power capacity and deliver affordable, clean energy across the country.

Greater coordination between central and state governments around wind targets, supply chain utilisation and the definition of a clear market roadmap are some of the key actions needed to put India on a pathway to meet its decarbonsation and renewable energy goals.

MEC+ and GWEC organised a virtual report launch and webinar on 10th June, you can watch our webinar here: Abbreviated Webinar India Wind Energy Market Outlook 2025

About MEC Intelligence (MEC+):

MEC+ is a specialist consulting firm focused on the wind and renewables sector for 10 years and is based out of India and Denmark. Our clients include largest global wind OEMs, European utilities, Global Supply chain players, Equity funds, and Independent Service Providers. MEC+ has expertise in guiding senior management on new technology and market opportunities. The company has delivered insights on some of the largest M&A deals in India, hi-tech innovation and technology roadmaps for global supply chain players, and strategic planning for profitable growth across multiple businesses.

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