REPORT
From Local Wind Power to Global Export Hub
India Wind Energy Market Outlook 2023-2027
OVERVIEW
India’s flagship “Wind Energy Market Outlook 2023-2027” report has been published. Jointly developed by GWEC India and Mec+. Featuring the latest key statistics, chapters looking at the key challenges facing the sector, a focus on supply chains and India’s potential to be an export power.
India’s Wind Energy Market Outlook 2023-2027 is the key tool for anyone working to strengthen India’s wind manufacturing sector.
KEY HIGHLIGHTS
India is a hub for wind manufacturing and has an existing annual capacity of 10-12 GW. Due to a slowdown in the domestic market in the last few years, this capacity has remained under-utilized. This is going to change as the domestic market is expected to see an increase in tender volumes. Also, the country has an opportunity to translate the projected global supply chain crunch to its advantage by boosting manufacturing capacity in the country.
Current Situation
By the end of 2022, total renewable energy installed in India stood at 121 GW of total installations with wind contributing 35% of this, making India the fourth-largest wind market in the world, in terms of cumulative installed capacity.
India needs accelerated deployment and commissioning of wind power projects if it is expected to achieve 140 GW of wind capacity by 2030, and advance towards the long-term goal of net zero by 2070. The three major drivers of wind growth in India are:
- Cost competitiveness of wind in the overall mix;
- Compliance of wind RPO targets by states and other obligated entities; and
- Dedicated grid infrastructure for integration
Onshore Wind Potential
While onshore wind power has been the backbone of India’s RE journey, a growing domestic and international appetite exists to tap into India’s significant offshore wind resource. Harnessing the full potential of offshore wind energy will be needed to lever the country towards its net zero target by 2070.
India is expected to install 21.2 GW by 2027. This installation rate could go up to 26.2 GW in the ambitious case and 17 GW in the conservative case.
Supply Chain
India is witnessing a revolution in its domestic manufacturing capabilities due to various initiatives such as “Make in India” and “Atmanirbhar Bharat”. India has 11.5 GW of nacelle manufacturing capacity in:
- Karnataka
- Maharashtra
- Gujarat
- Tamil Nadu
Creating an export potential avenue for manufacturers to enhance India’s position within the global wind supply chain since only ~2 GW was utilized and installed domestically in 2022.
Offshore Wind Potential
The Indian offshore wind market is expected to accelerate towards 2027 with annual installations increasing from 1.8 GW in 2022 to 2.8 in 2023, 3.7 GW in 2024, and peaking at 5 GW in 2025 in the base case. Overall, India’s wind market offers an opportunity for 21.1 GW of installations from 2023-2027.
Becoming a Global Export Hub
India can play a critical role in supplying the global wind industry. India must address key priorities like technology alignment, convergence in costs, and a supportive tax and incentive regime to enhance its competitiveness in the global wind supply chain.
Four steps to becoming a global export hub…
- – Create a solid and sustainable domestic market
- – Align manufacturing capabilities with global product portfolios
- – Demonstrate cost leadership by investing in new machinery, R&D and a skilled workforce
- – Export incentives
