Transformation of India’s Wind Energy Sector (2025 Regulations)

16 Aug 2025

Transformation of India’s Wind Energy Sector (2025 Regulations)

On 31 July 2025, the Ministry of New and Renewable Energy (MNRE) introduced sweeping regulations for the wind energy sector.

Key Provisions of the Policy

  • Key reform: Mandatory domestic supply chains, R&D centres, and data centres for all wind turbine manufacturers operating in India.

Status of Wind Energy in India

  • Global Standing: India ranks fourth in installed wind power capacity and is the third-largest renewable energy producer globally.
  • Strong Growth: Capacity has increased from 21.04 GW in 2014 to 52.1 GW as of July 2025.
  • Renewable Energy Role: Wind is the second-largest source in India’s renewable energy mix, after solar.
    • Total Renewable Energy Capacity in India – 237.49 GW
  • High-Potential States: Key states include Rajasthan, Gujarat, Maharashtra, Karnataka, Tamil Nadu, and Andhra Pradesh.
  • Potential: According to the National Institute of Wind Energy (NIWE), India has a wind power potential of 1,163.86 GW at 150 metres above ground level

  • ALMM (Approved List of Models and Manufacturers – Wind)
    • Replaces RLMM.
    • Mandates sourcing of critical components (blades, towers, gearboxes, generators, bearings) exclusively from domestic approved suppliers.
    • These components constitute 65–70% of turbine cost.
  • Domestic R&D Requirements
    All manufacturers to set up R&D centres within one year.

    • Turbines must be customised for Indian conditions (low wind speeds, high temperatures, dust storms, etc.).
  • Cybersecurity Safeguards
    • All turbine data storage in India.
    • Ban on real-time operational data transfers abroad.
    • Operations & control to be conducted only from Indian facilities
  • Quality Assurance (BIS Certification)
    • Mandatory BIS certification for all turbine components from Sept 2026.
    • Ensures safety, reliability, and performance standards under Machinery & Electrical Equipment Safety norms.
  • Transition Provisions
    • Exemptions for projects bid out before July 2025 (commissioned within 3 years).
    • Captive/industrial projects exempt if commissioned within 18 months.
    • Innovation window: 800 MW capacity exemption for new models over 2 years.

Rationale Behind the Reforms

  • Strategic Autonomy: Reducing dependence on Chinese imports (China’s market share in India rose from 10% in 2019 → 45% in 2025).
  • Level Playing Field: Domestic players like Suzlon (31% share) disadvantaged due to cheaper Chinese imports.
  • National Security:
    • Risks of foreign-controlled data servers & software updates (flagged by NSA & NITI Aayog).
    • Cyber resilience of critical infrastructure.
  • Efficiency: Tackle underutilisation of domestic manufacturing (20 GW capacity, but only 4.15 GW installed in FY 2024–25).

Key Government Initiatives

  • National Offshore Wind Energy Policy (2015): Leverages India’s coastline for offshore wind projects, with NIWE as the nodal agency for development.
  • National Wind-Solar Hybrid Policy (2018): Promotes hybrid projects combining wind and solar to enhance grid stability and diversify energy sources.
  • Financial Incentives: Encourages private investment through benefits like accelerated depreciation, concessional customs duty on components, and the Generation-Based Incentive for pre-March 2017 projects.
  • Repowering Policy for Wind Power Projects: Targets replacement of older wind turbines (under 2 MW) with modern, higher-capacity units to boost generation from existing sites.
  • Wind Capacity Expansion: Sets a Wind Renewable Purchase Obligation trajectory till 2030 and waives ISTS charges for solar and wind projects commissioned by June 30, 2025.

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Quick Revise Now !
UDAAN PRELIMS WALLAH
Comprehensive coverage with a concise format
Integration of PYQ within the booklet
Designed as per recent trends of Prelims questions
हिंदी में भी उपलब्ध

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