10.4 GW Tenders Issued For Standalone Wind & Hybrid Projects In ’22: India Wind Energy Market Outlook

MNRE Proposes to Hold Bids for 7215 MW Offshore Wind in Tamil Nadu

As per a report by GWEC and MEC Intelligence (MEC+), entitled ‘From local wind power to global export hub: India Wind Energy Market Outlook 2023-2027’ published recently, India could become a key player in the global wind energy supply chain. The India Outlook from GWEC and MEC+ highlights that in 2022, 10.4 GW of tenders were issued for standalone wind and hybrid projects. This followed the reopening of state tenders for standalone and hybrid wind, which were nearly dormant for the past few years after the introduction of the e-reverse auction regime.

The report emphasizes the great supply chain opportunities for India in the export market, and looks at the domestic challenges of ramping up deployment of wind energy in this decade to meet ambitious targets. The report forecasts that around 22 GW of wind energy capacity will be added in India over the next five years, at the current pace of growth. Under an accelerated growth scenario with heightened demand from central and state markets, as well as commercial and industrial consumers of clean energy, more than 26 GW could be added within this period.

The Government of India is targeting 140 GW of cumulative installed wind energy capacity by 2030, though various factors make it more likely that around 100 GW of capacity will be achieved by the end of the decade. The projected shortfall can still be avoided, but this will require proactive policy and industrial strategy support to help accelerate growth.

“India has an enormous strategic opportunity to leverage an invigorated domestic market and its existing wind manufacturing base and knowledge to become a key player in the global wind supply chain”, Ben Backwell, CEO, GWEC
Ben Backwell, stated, while adding, “The leadership already demonstrated by the Government of India to enable the expansion of wind energy in the country’s electricity mix is commendable. The potential is there for even more, and proactive policy support could enable more than 68 GW of total wind energy installed in India by 2027.” He concluded, “India has an enormous strategic opportunity to leverage an invigorated domestic market and its existing wind manufacturing base and knowledge to become a key player in the global wind supply chain. This would establish the country as a renewable industrial hub in Asia and beyond, advancing climate action across the globe.”

Sidharth Jain, MD, MEC+ said, “India’s wind power sector stands at an inflection point looking at multiple opportunity areas. With a growing domestic market and evolving global supply chain dynamics, Indian companies have exciting prospects to serve the global demand for wind equipment supply. Amidst rising domestic volumes and aligned policies, the Indian market expanded significantly in 2022, awarding 4.7 GW tenders.” He concluded, “Promisingly, 3.5 GW tenders have been awarded, and 5 GW more announced for 2023. In parallel, new horizons like offshore wind and the hydrogen ecosystem fuel growth towards a 10 GW wind market by 2030, practical estimates place it at 5 GW due to challenges like policy transmission delays and infrastructure constraints.” He went on to point, “India’s strategic geopolitical position and scale make it a prime candidate to develop as a global supply chain hub, provided the industry shores up competitiveness. This report aims to examine the facts, offering insights and recommendations to guide the industry’s trajectory.”

Earlier, GWEC released a report in March highlighting that  five countries, namely, Argentina, Colombia, Egypt, Indonesia and Morocco have the capacity to add 3500 MW of wind power in the coming five years if they do so aggressively.