Wind Energy in India: Progress, Policies and Potential

Wind energy, generated by wind turbines, is a growing source of electricity in India, with significant support from the government and advancements in technology. The country’s vast potential for wind energy, along with various incentives and policies, is driving its expansion and contributing to sustainable development.

An Overview Of Wind Energy in India

The Potential of Wind Energy in India

• Assessing Wind Resources: Wind energy is intermittent and varies by location, so extensive Wind Resource Assessment is crucial for identifying suitable sites.

• Government Initiatives: The Government, through the National Institute of Wind Energy (NIWE), has deployed over 900 wind-monitoring stations nationwide.
• Wind Potential Mapping: Wind potential maps have been issued at various heights above ground level, including 50m, 80m, 100m, 120m, and 150m.
• Recent Assessments: Recent assessments show a gross wind power potential of 695.50 GW at 120 meters and 1163.9 GW at 150 meters above ground level.
• Eight Windy States: The majority of this potential is concentrated in eight windy states: Andhra Pradesh, Gujarat, Karnataka, Madhya Pradesh, Maharashtra, Rajasthan, Tamil Nadu, Telangana

Current Capacity and Growth

Progress of India’s Wind Energy Sector: India’s wind energy sector, led by indigenous industry, has made steady progress, boasting a manufacturing base of about 15,000 MW per year and ranking fourth globally in installed capacity.

• • Installed Capacity: As of August 2023, India’s total installed wind power capacity was 44 gigawatts (the target for year 2030 is 140 GW), making it the fourth largest in the world in terms of wind power capacity.

• Areas of Presence

• • Geographical Spread: Major wind energy installations are found in states like Tamil Nadu, Gujarat, Maharashtra, and Karnataka, which have favourable wind conditions.
  • Wind Parks: India has developed several large wind parks. 
    • Examples: include Jaisalmer Wind Park (1064 MW), Muppandal Wind Farm (1500 MW), etc.

Incentives for Renewable Energy Development India

The government encourages private sector investment in wind power projects by offering incentives like Accelerated Depreciation and concessional customs duty exemptions.

• Generation Based Incentive (GBI) Scheme was available for wind projects commissioned before March 31, 2017.
• Reduction in import duty on specific wind turbine components.
• 10-year income tax exemption for wind power projects.
• Custom duty exemption for certain wind generator components.
• 100% excise duty exemption on select wind turbine parts.
• Renewable Energy Certificates (REC) Mechanism.
• Foreign Direct Investment (FDI) allowed up to 100% via automatic route.
• Implementation of Green Energy Corridor project for integrating renewable energy into the grid.
• Technical support, such as wind resource assessment and site identification, is provided by the National Institute of Wind Energy in Chennai.
• Financing schemes by IREDA for wind power projects.
• Special incentives for renewable energy technology exports.
• Feed-in-Tariff (FIT) scheme for wind projects up to 25 MW.

Policy Support for the Development of Wind Energy in India

Encourages optimal use of wind energy through repowering initiatives.

• Offers a 0.25% interest rate rebate for new wind energy projects.
• Extends fiscal benefits to repowering projects.
• Aims for a 10 GW hybrid wind-solar capacity by 2022.
• Predicts adding around 15,000 MW of wind-solar hybrid capacity from 2020-2025.
• A new report by GWEC and MEC Intelligence estimates India will install ~20.2 GW of wind power capacity between 2021 and 2025.
• To further promote wind energy, measures include setting a trajectory for Wind Renewable Purchase Obligation up to 2030, waiving Inter State Transmission System charges for solar and wind power sales until June 30, 2025, and issuing guidelines for tariff-based competitive bidding processes.

Conclusion

Wind energy holds immense promise for India’s energy needs, with substantial growth expected in the coming years.

• With ongoing government support, technological advancements, and favorable policies, wind energy is poised to play a vital role in India’s transition towards a cleaner and more sustainable energy future.